KEEL

Keel Infrastructure Corp. KEEL used its second-quarter 2026 earnings call to emphasize that scarce 2027 power is strengthening negotiations at Moses Lake, Sharon and Panther Creek. CEO Ben Gagnon said prospects are negotiating across all three sites as permitting advances. The call focused on permits, power expansion, construction timelines and lease economics. Management also framed $819 million of liquidity as flexibility to reach lease signing before major project financing. CEO Ben Gagnon said commercial engagement deepened during the quarter, with hyperscalers, AI companies, GPU cloud providers and large enterprises active across the portfolio. He said interest exceeds lease capacity. At Moses Lake, Gagnon expects the 18-megawatt site to be Keel’s first fully commissioned data center in 2027. The first Vertiv modules have arrived, with long-lead equipment secured or in production. Gagnon said Sharon discussions center on triple-net structures, while larger AI companies lead engagement at Panther Creek. Both Pennsylvania sites are attracting customers seeking 2027 capacity. CEO Ben Gagnon said Moses Lake’s go-vertical permitting should finish later in the third quarter. Site development is underway, and management still expects it to be Keel’s first data center online next year. Gagnon said Sharon secured zoning in April and land-development approval during the quarter. Final environmental permits remain in process, while management is evaluating one 110-megawatt phase. Gagnon said Panther Creek received zoning and conditional land-development approval, but final environmental permitting is taking a few months longer than anticipated. He said this does not change the planned 2027 power-delivery schedule or project economics. CEO Ben Gagnon said applications tied to nearly 2 gigawatts of potential Pennsylvania expansion capacity are progressing well with utility partners. Securing additional megawatts remains a focus. Gagnon said Keel is increasingly confident it can convert part of that pipeline into signed energy service agreements supporting HPC deployments through 2030. An update could come as early as December or January. Gagnon said Keel also advanced plans to consolidate three legacy Bitcoin power agreements into a single 96-megawatt HPC and AI agreement in Sherbrooke. Local approvals are secured, with provincial approval still outstanding. CFO Jonathan Mir said Keel strengthened its capital position after raising $458 million through convertible senior notes. Liquidity reached $819 million as of Aug. 7. Mir said that liquidity supports development through lease signing, expansion opportunities and cash SG&A through 2028. The CFO also said Keel prefers to assess project financing after leases are signed, when management expects its cost of capital to decline. Second-quarter revenue was $30.4 million, down 50% year over year and below the $35 million Zacks Consensus Estimate. The company incurred adjusted loss per share of 18 cents, wider than the Zacks Consensus Estimate of 8 cents. The loss also widened from 2 cents per share incurred in the year-ago period. Keel Infrastructure Corp price-consensus-eps-surprise-chart | Keel Infrastructure Corp Quote Analysts tested whether permitting delays or political scrutiny could disrupt leasing activity. CEO Ben Gagnon said Keel believes secured power remains unaffected to date and described Pennsylvania’s industrial permitting framework as an advantage. A Northland Capital Markets analyst asked whether Keel still targets three lease announcements in 2026. Gagnon did not restate that target, instead emphasizing active due diligence and negotiations across all three sites. A KBW analyst asked how tenant quality is assessed as AI leadership changes. Gagnon said Keel intends to stay model-agnostic and prioritize counterparties capable of supporting contracted revenue for one to two decades. CEO Ben Gagnon closed with an emphasis on patience rather than speed. He said customer quality, lease economics and financing support matter more than signing contracts simply to produce announcements. The next phase centers on converting negotiations into leases while completing permits and protecting 2027 delivery. Management said its liquidity provides room to pursue those steps without near-term funding pressure. KEEL carries a Zacks Rank #3 (Hold). Its Momentum Score of B is its strongest Style Score, while its Value Score of F, Growth Score of D and VGM Score of F reflect weaker readings across the other styles. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks Style Scores complement the Zacks Rank, with A and B representing stronger characteristics. KEEL’s mix combines favorable momentum with weaker value, growth and VGM scores and does not match the framework’s strongest Rank-and-Style profile. The Zacks Rank can change as earnings estimates are revised after the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Keel Infrastructure Corp (KEEL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 8:00 a.m. ET Investor Relations - Laine Yonker Director and Chief Executive Officer - Ben Gagnon Chief Financial Officer - Jonathan Mir Operator: Ladies and gentlemen, thank you for standing by. Welcome to Keel Infrastructure Corp. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to Laine Yonker, Keel Infrastructure Investor Relations. Please go ahead. Laine Yonker: Thank you, and welcome to Keel Infrastructure's Second Quarter 2026 Conference Call. With me on the call today are Director and Chief Executive Officer, Ben Gagnon; and Chief Financial Officer, Jonathan Mir. Before we begin, please note, this call is being webcast with an accompanying slide presentation. Today's press release and presentation can be accessed on our website under the Investors section. Turning to Slide 2. I'd like to remind everyone that certain forward-looking statements will be made during this call and that future results could differ from those implied in this statement. The forward-looking information is based on certain assumptions and is subject to risks and uncertainties. I invite you to consult Keel's 10-Q for a complete list, which will be available on our website and the SEC website. Please note that references will be made to certain non-GAAP financial measures, and therefore, may not be comparable to similar measures presented by other companies. We invite listeners to refer to today's press release and our filed 10-Q for definitions of the non-GAAP measures and their reconciliations to GAAP measures. Please note that all financial references are denominated in U.S. dollars, unless otherwise noted. And now turning to Slide 3. It is my pleasure to turn the call over to Ben Gagnon, member of the Keel Board of Directors and our Chief Executive Officer. Ben, please go ahead. Benjamin Gagnon: Thank you, Laine, and good morning, everyone. 18 months ago, we laid out a clear vision for both Keel and the data center industry. We told you that the defining constraint of the most important technology of our lifetime was not chips or capital, it was power. And we told you that by the end of 2026, power would be even more constrained and even higher demand. We laid out a clear investment thesis that focusing on developing power in the right places on time lines that matter would be incredibly valuable to prospective tenants and value maximizing for shareholders. We explained the necessary work ahead of time, and we kept you informed step by step exactly how we would transform this company into a premier regional data center developer. We said we would exit Latin America and Bitcoin and become an American HPC and AI company. We did. We said we would rebuild the balance sheet to enable our transition to an HPC and AI infrastructure company. We did. We said we would be ready to monetize our assets when power was scarcer and demand was stronger. We are. Throughout this transition, we've delivered on our commitments, either on time or early. If time lines moved, we told you why, we told you what it meant, and we told you what did and did not change. That's not luck. That's a track record reflecting strategic discipline and consistent execution. Turning to Slide 4. In May, we shared that management was focused on 3 things this year: one, advancing permitting and leasing across all 3 priority sites; two, securing our expansion capacity; and three, delivering energized megawatts as quickly as possible for our customers. 90 days later here is where each one stands. First, on permitting and leasing. I will walk through each site's permitting and leasing update individually in a moment, but I'd like to first highlight the main takeaways here: one, we further advanced permitting across all 3 priority sites this quarter and have clear visibility on permit completion at each site; and two, near-term power is scarce and our sites have it. That scarcity is doing the work for us. It's why all 3 sites have multiple potential customers engaged and negotiating, and it's why these conversations start from a very different place than they would have 2 years ago. This is an important distinction because when your sites solve the hardest and most valuable problem potential tenants have, power, timing and location, the commercial process stops being a pitch and it starts being a negotiation. And so to lead this next pivotal phase, last month, we welcomed Ganesh Aiyer as President of Keel. Ganesh has spent his career at the intersection of infrastructure and commercial strategy and joins us after nearly 7 years as Chief Business Officer of Digital Realty. He is now leading our commercial efforts. And while he has only been with us about a month, he has already hit the ground running. Second, on expansion capacity. Last quarter, we explained our thesis that the market was not ascribing much value to the unsecured megawatts in our expansion capacity. We also explained that securing these megawatts was an important focus for management and a key value driver for shareholders. So first, in Pennsylvania, we've been working closely with both of our utility partners to advance our power applications for expanded capacity. While we can't provide details today, we are increasingly confident in our ability to convert potential expansion capacity from our 2-gigawatt Pennsylvania pipeline into more signed ESAs, delivering energized megawatts for HPC through 2030. We expect we should be able to provide investors with a fulsome update as early as December or January. Additionally, we advanced our Sherbrooke data center plans during the quarter, securing all necessary local approvals from the city and the local utility, with only provincial approval outstanding. We are excited to significantly expand our relationship with Sherbrooke, where, over the past 7 years, we have generated substantial revenues, taxes, jobs and community benefits. If approved, we will consolidate our 3 legacy Bitcoin power purchase agreements into a single 96-megawatt HPC and AI power purchase agreement for a new data center development in Sherbrooke, a market where new data center energy capacity is nearly impossible to secure and is in high demand. Sherbrooke will be designed from the ground up to support the next generation of hardware and has the potential to become one of the most technologically advanced data centers in all of Quebec upon completion. Third, delivering energized infrastructure as soon as possible. Every commercial negotiation comes down to the same 2 questions: how fast can I get my first megawatts, and how fast and far can I keep growing with you after that? So in parallel with every commercial negotiation, we are working constantly with our partners, our manufacturers and our supply chains to protect the time lines our customers are underwriting. Turning to Slide 5. Let me share some examples because most of this work never makes a press release. This quarter alone, we accepted delivery of long lead time items and the first Vertiv modules at Moses Lake. And we'll be conducting further factory and predelivery inspections with Vertiv as modules come off the assembly line. We completed inspections for backup generation equipment in Moses Lake. We took delivery of several long lead time items in Sharon, including multiple transformers. We began executing final fiber contracts across our 3 sites, ensuring multiple path redundancy and connectivity will be available before the sites are online. We continue to update our data center designs, improving power density specs so that we can meet customers' hardware requirements. We completed the first phase of construction across all 3 sites, which is the decommissioning of all U.S. Bitcoin mining operations. And most importantly, we significantly deepened our bench of subject matter experts across construction, power, fiber, engineering, controls and other critical disciplines, and we continue to add talent in these areas. Clear deliberate steps to derisk our project time lines and ensure we can deliver state-of-the-art infrastructure within the time frames and budgets our customers require. These steps mark the difference between a promise and a delivery date. Step back and look at what all of this adds up to. 18 months ago, we laid out our thesis and our strategy. Today, we are exactly where we said we wanted to be. The market is where we anticipated it would be. We are now active in the commercial process with the sites we wanted to bring to market, at the moment we wanted to bring them to market. We are doing so from a position of financial strength and with permitting largely derisked. We followed through on our promise not to cap upside by signing leases prematurely and that patience is now paying for itself. This is our goldilocks phase, not too early to matter, not too late to win, exactly the window we built this company to hit. Now let me show you what execution looks like on the ground starting at Moses Lake. Turning to Slide 6. Moses Lake is shaping up to be a milestone site for Keel. It will likely be the first sight fully permitted, the first site to come online, the first site to generate HPC revenues, and upon commissioning, we expect it to return significant equity capital to our balance sheet and become our first source of durable free cash flow. Permitting in Washington works a bit differently than in Pennsylvania, and has allowed us to start site development while we finish the go vertical permitting process, which we expect will wrap up later this quarter. The Bitcoin mine that stood there before is gone, completely removed. Today, the site is being prepared for the Vertiv modules with every piece of critical long-lead equipment secured and being actively manufactured. In fact, the first Vertiv modules have already arrived on site with deliveries continuing from here. When you look at that rendering on the slide, understand that everything in it is bought, contracted or already being manufactured, including the building itself. We look forward to delivering Moses Lake as our first fully commissioned and energized data center in 2027. And the commercial process reflects this. Moses Lake has interest from exactly the potential tenants you would want, leading AI companies, GPU clouds and enterprises that need power now. Inbound activity and negotiations have accelerated throughout the quarter, reflecting just how scarce near-term power is in the Pacific Northwest. Moses Lake serves a different customer profile than our Pennsylvania sites, faster-moving companies that value speed and a fully operated facility. So due to that customer demand, we may structure leases here on a modified gross basis rather than triple net with credit support structured to match. That approach lets these tenants move at the speed they need, keeps Keel on operational control and creates more value for a site with the size and scope of Moses Lake. Turning to Slide 7. As Sharon momentum continues to build, we secured a full zoning in April. Land development was approved during the quarter and our final environmental permits are submitted and progressing on track with only a few environmental permits remaining before Sharon is cleared. We also iterated on the designs throughout the quarter, evaluating how to best consolidate the compute capacity, which we believe would be a simpler, less complex build and an overall stronger product. Sharon is in active commercial discussions today with multiple parties engaging on the site simultaneously and evaluating it for exactly what it is, rare, uncontracted 2027 power in PJM. The structures under discussion here are focused on triple net and include pairing fast-growing AI companies with investment-grade credit support, exactly the kind of structure that enables a high-growth customer to deliver a financeable long-term lease. Turning to Slide 8. And then there's Panther Creek. 350 megawatts of secured utility capacity with PPL, 2 hours from New York and Philadelphia in the middle of one of the most sought after AI corridors in America. This quarter, we secured zoning, we secured conditional land development approval and we refined the data center design for higher density deployments because with potential expansion capacity to 500 megawatts or more, that is where customer demand is going, not just solving for near-term power, but power that can keep scaling for years to come. On permits, we are in the final stages of our last few environmental permits. All have been submitted and are progressing. However, the final process with regulators is taking a few months longer than originally anticipated. For investors, I would like to clarify what this means: one, the final DEP permitting does not change our planned power delivery schedule under the ESA; two, it does not change the anticipated economics of the project; and most importantly, three, it has not slowed commercial progress or interest. As of today, our earliest RFS date continues to be 2027. And for the customers that we are speaking to, we don't believe this will have an impact. Commercial interest at Panther Creek is high, and we believe recent broader market dynamics are also beneficial for the site. Because of the scale of the Panther Creek campus, engagement is led by large, sophisticated AI companies, and we expect interest from the very largest players to deepen as the site reaches execution-ready status on permitting. That is the pattern in this market. The bigger the counterparty, the more they value certainty. And with every permit that lands, Panther Creek becomes something only a handful of sites in America can offer, near-term power, at scale with room to keep growing for years. Today, we have multiple potential customers negotiating across multiple sites simultaneously. Interest across the portfolio far exceeds the capacity we have to lease. And these are the counterparties you would want at the table, hyperscalers, leading AI companies, GPU cloud and large enterprise. While I cannot name names or reveal particulars, I want you to understand that there's competitive tension in this process and our challenge is not finding customer demand, but in choosing among it. I also want to be direct about how we think about signing. We have been very clear for the past 18 months about our commercial time line. We did not rush to the finish line, but rather took the time to derisk our sites, build commercial interest and ensure we secure the best economics possible for our shareholders. A lease is not a trophy for a press release, it is a 15-year commitment of infrastructure, credit and trust. And the difference between a good lease and a great one is measured in hundreds of millions of dollars over its life. Holding the bottleneck everyone needs to grow means we are negotiating from strength, and we will focus on optimizing across customers, economics and cost of capital. We are not going to cap the upside of a generational asset in order to deliver a headline. We remain very optimistic and increasingly confident from the engaged and active tenants in our commercial process. The intensity makes clear that our portfolio is exceptionally well positioned to solve a wide variety of customers' problems. Secured power available in 2027, attractive locations and proven delivery partners remain the differentiators driving every customer conversation we're having. Turning to Slide 9. And with that, I'll turn it over to Jonathan to discuss our Q2 financial results. Jonathan Mir: Thanks, Ben, and good morning, everyone. I'd like to open with a simple message reiterating what I communicated on our Q1 call. We are better capitalized today than at any point in this company's history and that capital position gives us something invaluable in this market, the ability to both advance and derisk our sites at the pace our customers require and to make commercial decisions driven by our objective of delivering the best possible long-term risk-adjusted shareholder returns rather than being driven by time-pressured liquidity position. I'll walk through our capital strategy in more detail, but first, I'll review our Q2 results. Turning to Slide 10. For the second quarter of 2026, revenue was $30 million compared to $61 million in the second quarter of 2025. The change was largely due to the decrease in average Bitcoin price and the shutdown of the Moses Lake cryptocurrency mining operations during the quarter. Operating loss for the quarter was $141 million compared to operating income of $11 million in the prior year period. This change includes $63 million of accelerated depreciation relating to mining rig shutdown at the Panther Creek and Scrubgrass sites, change in fair value of Bitcoin and realized loss in Bitcoin was $20 million compared to a gain of $32 million in Q2 2025. Loss from continuing operations of $64 million or $0.11 a share compared to income from continuing operations of $13 million in Q2 '25. Adjusted EBITDA for the quarter was negative $24 million compared to $7 million in the prior year period. This decrease in operating margins reflects a decline in the Bitcoin price and increase in G&A related to senior subject matter expert hires as we scale up to the next stage of our business and an increase in stock-based compensation year-over-year. Our cash SG&A for the first half of 2026 and averaged $23 million per quarter, and we are currently tracking $100 million of cash SG&A for the year. Again, the increase versus prior year is driven largely by the high-quality selective senior hires needed to support the commercialization phase of our strategy. The company sold 1,085 Bitcoin for $75 million in proceeds during the period beginning April 1, 2026, and ending August 7, 2026. As of August 7, 2026, the company's Bitcoin balance stands at 1,861 Bitcoin. As previously discussed, our intent is to liquidate our Bitcoin position in 2026. Turning to Slide 11. I'll now cover some capital market observations as well as the liquidity update. In June, we closed a $458 million offering of convertible senior notes upsized from an initial $350 million, having received strong investor demand, which we greatly appreciate. This investor demand allowed us to be thoughtful about who we brought on to our cap table, and we're pleased to have added several high-quality, long-term oriented investors as a result. Investor feedback has been positive regarding our clarity on how we will use this new capital. This isn't discretionary or speculative capital that is earmarked to expand power capacity at 2 of our derisked owned sites, Panther Creek and Scrubgrass. We're not using these proceeds to take on new development risk. We're using them to build incremental power capacity at existing sites. Whenever we need external capital, our commitment is to be clear on the uses of that capital and why we believe the associated long-term risk-adjusted returns create value for our shareholders. Taken together, we see the convert offering as having been both a vote of confidence from the market and the direct enabler of the next phase of our strategy execution, including pipeline growth through expansion capacity. Moving on to liquidity. Total liquidity as of August 7 was $819 million compared to $533 million reported at the beginning of May. To reiterate, we believe our current liquidity supports site development through lease signing, expansion capacity opportunity and fully funds our cash SG&A through 2028. Before we open the call to Q&A, let me touch on observations about capital markets conditions as they bear directly on how we plan to fund construction of our sites. First, in respect to the project level high-yield debt financing, we're comfortable with current market conditions. Even with spreads widening, we believe there is adequate depth for the amounts we would raise and prospective returns to equity capital remain attractive. Second, an investment-grade offtake directly or wrap remains critical to obtaining efficient debt financing. The cost of financing against a noninvestment-grade partner is meaningfully higher and has less market depth. However, at least for now, capacity is available in the market to finance both against investment grade and selective noninvestment-grade customers. We continue to believe that an investment-grade customer wrap with durable lease terms is the best choice for shareholders in those circumstances. Lastly, our liquidity position enabled us to evaluate any potential capital requirements on a post-lease basis when we expect our cost of capital to decrease. In summary, we believe that current market conditions leave us well positioned to finance each site's construction smoothly and on terms that will create value for our shareholders. Turning to Slide 12, I'll turn it back to Ben for some closing comments. Benjamin Gagnon: Thank you, Jonathan. Before we open the line for questions, I want to say a quick word about why Keel is doing all of this. Every generation builds its defining infrastructure, and it always gets built before the world agrees it should be. The railroads, the electric grid, the highways, the Internet, intelligence is ours. Work is no longer measured in jewels, it is measured in tokens. And while the price of a token has a ceiling, the value of one does not. We named this company Keel for a reason. The infrastructure we are building is the foundation that enables the next generation. We are not competing with anyone's ideas about AI, we are powering the people who have them. 18 months ago, this was just a thesis for Keel. Today, we are a company executing in exactly the window we saw coming. Operator, please open the line for questions. Operator: [Operator Instructions] And first question is going to come from Gareth Gacetta with Cantor. Gareth Gacetta: it's Gareth on for Brett. I was hoping you could touch on kind of the political environment around data centers kind of across the U.S. I know you mentioned that these kind of developments haven't really changed the power delivery schedule or also kind of the commercial progress among potential tenants. But can you just talk about how these potential tenants are looking at the regulatory backdrop and what that might be impacted on their timeframe? Benjamin Gagnon: Yes, happy to do that, and thanks for the question, Gareth. The regulatory backdrop and the political backdrop is something that we obviously are watching very, very closely. Clearly, there's a lot of headlines around the U.S. right now with moratoriums and regulatory actions and kind of new frameworks or new policies or new tariffs that are being proposed and being suggested. I think the reality is, is that every time that, that happens in a place, it's going to increase the value of the other sites that are not impacted by those regulations. And obviously, in a market dynamic where there's so much growth happening so fast, sometimes some markets need a little bit of time to catch up. I think one of the advantages that we have here in Pennsylvania is Pennsylvania is kind of enjoying the second mover advantage. It definitely wasn't the first to jump up there and start building data centers. They've really had a lot more permits and rules and different steps and hoops to jump through in the first place. And so I think that the reactions that you're seeing across the country are due to the huge influx of data center demand in applications. And I think Pennsylvania had a pretty good framework in place already for large industry, large manufacturers, very large kind of consumers coming in to build industrial capacity. And I think it sets us up, and I think it probably can create some value to Pennsylvania to see these actions taking place in other sites because that capacity still needs to come in the United States. And those are the areas that there's going to be continued opportunity in. Gareth Gacetta: Great. That's super helpful. And then maybe just a quick follow-up. Could you touch on your current pipeline? I think it's about 480 megawatts you guys have secured. But could you just provide any color on how much of that pipeline is exposed to this application process? Benjamin Gagnon: So we've got 2 different buckets of energy. We've got our secured and we've got our expansion capacity. As of right now, all of our secured capacity, we believe is unimpacted to date, and we're going to continue to monitor that very, very closely. The expansion capacity may be impacted by future changes or future policy implications. But right now, everything is progressing incredibly well on securing our expansion capacity. I mentioned it briefly on the call. We're working with our utilities on a daily basis. Our applications to secure our expansion capacity, which is almost 2 gigawatts across the state, is going very, very well. And we're increasingly confident that we're going to be able to secure additional power and look forward to giving investors the update as early as December or January. Operator: And our next question will come from Greg Lewis with BTIG. Gregory Lewis: I was hoping to kind of talk a little bit about the permitting process. I noticed you talked about some of the environmental permitting, just I's that we have to dot and Q's we have to cross, as you're working with your data center [ customers ], I'm curious, is there like a dual process around how we could address some permitting issues? And the reason I'm asking is one of the things that we've heard is sometimes the backup power generation, if it's diesel or natural gas, tends to trigger some environmental permitting challenges or just things we need to address versus maybe using backup batteries as a solution. Just kind of curious if that's something that we're exploring just in case the environmental permitting takes longer or is just a slower moving process maybe than we thought? Benjamin Gagnon: Yes. Thanks, Greg. So to answer your question, you're certainly right that when going for environmental permits, especially on the backup generators, those can be challenging. And there are ways that you can manage that. I mean there are different quality of generator efficiencies and quality of emission controls. So certain generators are easier to get permitted, certain generators are more difficult. Really, it depends on how much you expect to use the generators and the associated emissions over the year. So the data center project can have the same backup generator, but based on what its expected uptime, could have 2 very different permits. So it's a bit of a complex and nuanced situation. But we're always striving to find the ways to speed up and compress those time lines, especially if it's something like permitting. So we do evaluate all of the solutions out there with regards to BESS or different generator solutions to try and keep that process as quick and as efficient as possible. Gregory Lewis: Okay. Great. And then I was hoping, Ben, you can talk a little bit about Sherbrooke. I guess just now that the power has, I guess, been across the site or however that's used by potential customers, [indiscernible] I guess, the 9,600 megawatts [indiscernible] plus 1 site. How does that -- what does that actually mean from a marketing perspective for Keel? Benjamin Gagnon: Yes, that's a great question, Greg, and I'm happy to speak about the Sherbrooke project. So we've got a decent-sized portfolio in Quebec, and Quebec represents a market that is very captive. There's a lot of legislation in both Canada as a country and Quebec as a province that really strongly incentivizes data sovereignty at the national and at the provincial level. But unfortunately, it's just been very, very hard to secure new electrical capacity for data centers. What we have in the province of Quebec is we've got a huge energy portfolio, but specifically approved for Bitcoin mining. And what the approval that we received on Sherbrooke was for consolidating 3 different Bitcoin mining power purchase agreements we have into a new single power purchase agreement, specifically for HPC and AI. And that one piece there, the change in the industrial use case is the big change here that enables us to actually move forward with developing an HPC and AI data center once we have the last sign off from the provincial minister. And the reality is, is that because the legislation is there and because the demand is captive, we think that Canada and Quebec largely can charge a little bit of a premium on the exact same compute because they just are that much more captive and the capacity is just that much more scarce. Operator: And the next question will come from Mike Grondahl with Northland Capital Markets. Logan Hennen: This is Logan on for Mike. Ben, first, can you provide a formal update if Keel is still targeting 3 leases announced in 2026, given the extended time line now for Panther Creek? And maybe just an update on how demand has evolved over the last 90 days since that target was announced? Benjamin Gagnon: Yes, happy to cover that, Logan. We're still in active due diligence and negotiations at all 3 of our sites. I think the commercial process is going incredibly well. At every 3 of our priority sites, we've got a lot of very interesting and sticky potential tenants who are working through the negotiation process. And I think at this time, while we're working through the negotiations, we're just going to continue to focus on working through those negotiations and the multiple parties as trying to give a clue or an indication as to where any particular negotiation for any particular site or tenant is at. But we remain incredibly optimistic and confident based on the commercial process so far, based on the continued process that we have with permitting across all 3 sites as well as the other background works with the engineers, the supply chains, the fiber contracts, everything is continuing to move forward. And I think the closer you get to energization date, the more valuable your energy becomes by the day. And so it becomes an easier and easier commercial process when you're working through a 2027 delivery date as opposed to a '28 or 2029. And so that continues to keep us incredibly confident, optimistic and it also helps to keep our potential tenants very engaged. Logan Hennen: Great. Yes, I appreciate the insight there. Then one more from us. Can you kind of formally update us on the Scrubgrass site, where that's at today, how that site is progressing and the demand you're seeing for that 2028 plus power? Benjamin Gagnon: Yes, sure. Happy to give an update on Scrubgrass, although there isn't much of a substantive update to give. Scrubgrass is what we call a pipeline site. So this is a very exciting 1 gigawatt plus campus in Western Pennsylvania. But right now, the process for Scrubgrass is really in the energy application stage. So we have been working with the local utility there for a detailed load study for 750 megawatts. And we've also been working on the pipeline and engineering, as many investors know, for a pipeline to support 550 megawatts of on-site generation with CCGTs and an IPP who would come in and deploy the turbines, finance, operate and sell the power to the end customer. At this stage, we are still working on securing the power. And until we have secured the power, and we have a firm final understanding of how big the site is going to be by what time, we're not doing the engineering work for building out the data centers or planning out the data centers. We have not submitted any permits or any proposals at this time. We're really focused on securing the power and working through what we call a mass grading plan and kind of a site campus layout plan so that we can know, as soon as we get the power approved, where we're going to want to build buildings, how we want to build buildings, the size of the buildings, the number of the buildings, the cadence and that sort of thing. But at this stage, it's still really in the energy application phase, and we should be able to provide investors an update as early as December or January. Operator: And our next question is going to come from Michael Donovan with Compass Point. Michael Donovan: On Sharon, I was hoping we could discuss the cadence for RFS. Are you still expecting 30 megawatts for the first data center and then expanding it by the 80 megawatts? Benjamin Gagnon: So we've been working on that, Mike, and we've been working on how do we compress our time lines as much as possible. And also how do we improve our power density. As of right now, we haven't updated it, but we are looking at ways that we can compress it into 1, 110-megawatt phase. Michael Donovan: Okay. That's helpful. And then at Moses Lake, is an additional 10 megawatts at the site still an option? Benjamin Gagnon: No, we've decided to give up that option, and we are just focusing on the 18 megawatts in Moses Lake at this time, and we have given up the option. Operator: And our next question is going to come from Bill Papanastasiou with Chardan. Bill Papanastasiou: Can we please double-click on the environmental permitting process. Are you seeing a higher bar being set given the recent political headwinds on building data center capacity? And more specifically, how would you assess the likelihood of environmental permitting approvals today relative to prior quarters? Benjamin Gagnon: Thanks, Bill. Yes, happy to dig into that a little bit. I mean, really, when you look at our permits across both Sharon and Panther Creek, they're really kind of the same permits at both facilities. They're all environmental. It's largely associated with sewage, which is a pretty standard permit to apply for and get. It's not one that tends to be controversial as well as kind of the ground stuff. So things that deal with erosion, water, storm water is basically what the rest of the permits entail. So these are engineering focused. Like I said, they're not generally politically sensitive or subject to a whole lot of opinion. It's really just the engineering work. And one of the things that we've mentioned on previous calls, I think people have asked about our relationship with the OTO, which is Pennsylvania's Fast Track Office, so Governor Shapiro has a fast track office for permitting. That's actually run out of the DEP because the DEP is well known for kind of taking the longest line item in the permitting process. And that's actually split up into 2 departments. There's a Eastern DEP and there's a Western DEP, and it's the Eastern DEP that tends to be the one that's a bit more overworked and it takes a bit longer to go through the permitting process than the Western one. And so it's really just a matter of working through the backlogs. But this is a well-known -- these are pretty standard permits. This is a well-known process, and we remain incredibly confident, most confident we've ever been on completing our permits for both Panther Creek and Sharon today. Bill Papanastasiou: Appreciate that. And apologies if this was mentioned, Ben, but the conditional approval at Panther Creek, what are the conditions attached to that? Benjamin Gagnon: There's too many conditions to name, but to give you kind of like some examples, conditional approval will include things like you need to adjust your setbacks or maybe you need to adjust the height from 62 down to 60 or just something like that. They're pretty standard recommendations. It will be very specific. They will usually be very numeric, and it's make the following recommendations or implement the following systems or achieve the following conditions. They are not hard to comply with. And the real advantage of having that conditional approval, it's a very clear checklist of everything that you need to do so that, that conditional goes away and you are just fully permitted. And so it's a very clear prescription or recipe or however you want to think about it for getting there. If you're -- if they don't want to get you approved then they wouldn't be providing such a clear road map for that success. Bill Papanastasiou: Understood. And then there was a prior question on Quebec. Can you talk about that opportunity? How ripe is the sovereign AI market in the province? And how do you see Keel capitalizing on that? Benjamin Gagnon: Yes. So we've spoken with a number of different industry experts, especially in the province. We think that rates generally in Canada are higher than they are in the United States, but it's hard to put a firm figure on that. But generally speaking, they are higher. And what we see is that there's some nice diversification benefits for us as a company. We have the U.S./Canada diversification element. So there is the element where, in Canada, you don't have to worry about regulatory changes with regards to tariffs and all of those other items, which might impact the cost of a data center. So we think that delivery in Canada could potentially be cheaper than in the United States, and we think the market could potentially be worth more than it is in the United States. The challenge with Canada is the same challenge we've always had with Canada. It's just a very hard market to grow in organically. And so if you're looking to achieve a 1 gigawatt growth in Canada, that's probably a very, very, very high hanging fruit and much higher hanging fruit than trying to achieve 1 gigawatt at a campus like Scrubgrass in Pennsylvania. But for the power that we have, we believe that working through to get that approval, working forward to make sure that we have the clear path, all the permits, all the support needed and secured for us to develop a data center, we believe we can generate some pretty attractive yields in Canada. Operator: [Operator Instructions] And our next question will come from Stephen Glagola with KBW. Stephen Glagola: Ben, how should investors think about the significance of the August 20 Department of Environmental Protection meeting for Panther Creek, and what are the key decisions or milestones that need to come out of that meeting? Benjamin Gagnon: It's very routine meeting. I don't think you should be thinking about this as a special or a unique thing. It's just another routine meeting. Stephen Glagola: Okay. All right. That's good to know. And I guess a higher-level question for you would be, when you're evaluating prospective tenants, to what extent does your view of the long-term model or landscape influence your willingness to partner with a particular AI lab? Benjamin Gagnon: Well, that's a very interesting question, one that we actually think about a lot because the market is changing quite quickly. Even just last week actually, we were talking about the entire company, Keel has adopted Claude for our enterprise AI solution, but a year ago, none of us were using Anthropic, we were all using ChatGPT and now that's completely changed. So I think that model -- or I think the market is going to continue to change and adjust. This is a market where the incentive is very high. There's a lot of people who want to push for the top, and we do expect it's going to continue to change. We think that Anthropic has found a nice niche in the enterprise market, which is the one that we've always been identifying as the one that's really going to be driving this industry forward as opposed to retail is going to be the enterprise consumers and maybe they develop a little bit of a moat here. But we're going to try and stay as agnostic as possible with regards to the models because as we've said before, a lease is really not a trophy for a press release, it's a 15-year commitment. And the gap between a good one and a bad one is measured in hundreds of millions of dollars. We're not in this for the company who can only pay their rents for 1 year, right? We're in this to find the companies who are going to be able to give us long-term contracted, predictable revenue for 1 to 2 decades. Operator: And our next question is going to come from Nick Chiles with B. Riley Securities. Nick Giles: A lot of good questions asked already. So I just wanted to zoom out and ask, Ben, what do you really see as some of the biggest risks at this point? It seems like you made some progress on the supply chain front, but curious if there's any kind of further mitigation you can do there? Benjamin Gagnon: Thanks, Nick. I think the biggest risk at this point is probably just broader macro. The reality is, is that there's still very little 2027 power that's available in the market. And we have a really strong position because we have a very reasonable amount of the 2027 leasable capacity remaining. So I think, broadly speaking, that keeps a lot of our -- well actually keeps all of our potential tenants incredibly engaged. It keeps them incredibly sticky. They're all looking to solve the exact same deployment problems. And so there's a real strong advantage there towards having that 2027 power that everyone is so focused on delivering. I think the broader market is probably what we're watching the most, how our capital markets evolving and changing, how are the financing opportunities for the market changing, what's happening with interest rates and broader risk-on, risk-off sentiment, how is the market processing, the increasing amount of intercompany financing that we're seeing across the industry? I think those are the things that were really the bigger risk factors for the business. And fortunately, those are things that the entire industry kind of equally faces together. But given we have that 2027 power that's in high demand, we're incredibly highly confident with our portfolio and moving forward with the commercial processes for all of our sites. Nick Giles: Great. And that's good to hear. And then just maybe on the CapEx side, I was curious if you kind of have any rough sense for where that could shake out? And if there's a kind of development cost or a certain yield to cost hurdle that you're looking to achieve on any signing? Jonathan Mir: This is Jonathan. Thanks for the question and good to talk to you this morning. We continue to suggest that you use the rule of thumb industry averages that you might see in equity research for purposes of your own modeling in terms of construction costs and yield on costs and that should work well for you. Nick Giles: Fair enough. I appreciate that, Jonathan. And then just one more, if I could. I think all the BTC sites have been decommissioned now. So should we really be zeroing out revenues for the balance of the year? Jonathan Mir: So at the beginning of the year, we made clear from our liquidity forecast that we were assuming there would be no cash contribution from BTC embedded in any of our forecasting. We still do have rigs up in Canada as a practical matter. They might contribute 2 or 3 Bitcoin a day. But again, all of our discussion around liquidity and projected liquidity assumes that the Bitcoin business provides no cash over the course of the year. Operator: And the next question is going to come from Martin Toner with ATB. Martin Toner: Congrats on the progress. A question about timing. Now that Panther Creek, which is the flagship or crown jewel asset, not to put words in your mouth, is delayed relative -- likely relative to the others. How do you think that changes timing for deal announcements? I mean, is it possible a tenant wants all 3, and therefore, it will take a little bit longer to sign it? Or which one do you think will go first? Benjamin Gagnon: Thanks, Martin. It's -- we have an internal betting pool in terms of which site is going to go first, but it's really, really hard to pinpoint exactly where that's going to land out. You don't really know what's going on in the background with each customer. And generally speaking, they're going to be as aggressive as their back pipeline of demand is there. So they're going to be quite aggressive depending on what's unique to them. With regards to a timing for Moses, Sharon, Panther Creek and whether or not 1 potential tenant could be interested in all 3, I mean, I can confirm that we have multiple tenants who want all 3 sites. But that doesn't mean that's how we want to run the process or that's how we necessarily want to be building our portfolio. We'd rather be looking at trying to keep tenants focusing on individual sites, get them focused on one site that they can take down and then look at how they can build potentially a pipeline of growth with us beyond that first asset. So many of the things that -- many of the tenants that we've been speaking to recently are not just interested in an asset, they're interested in finding a development partner that they can continue to scale with predictably over time. And so that's how a lot of these conversations are going is how do we get on with Moses Lake first, but then how do we also sign up for a second site or continued expansion in '28 and '29 with you. Same thing with Sharon and same thing with Panther Creek. Whether or not that impacts the timing for Panther Creek is not certain right now because the commercial process is still incredibly active and nobody seems to be batting an eye. As long as our RFS date remains 2027, I don't think there will be any impact here on our commercial process. Martin Toner: That's very helpful. Has the RFS date within 2027 changed for any of the sites? Benjamin Gagnon: For Panther Creek, we've always been end of year '27 and same year for Sharon, end of year '27. So I don't believe that we'd push back our Pennsylvania sites. I think Moses Lake has been delayed maybe a couple of months since our original guidance, but it's still going to be the first site that we expect to have online in next year. Operator: And the next question is going to come from Brian Dobson with Clear Street. Brian Dobson: I guess as you're looking at your portfolio, where would you like to add additional resources or expand in existing ones? I suppose, are there certain geographies that you're favoring more than others at this point? Benjamin Gagnon: Thanks, Brian. That's a great question because we are looking at how we continue to grow our pipeline beyond '27 through '28, '29 and 2030. We do still have a global view, but we do have a strong, I think, preference for the East Coast, specifically the U.S. Northeast and the Midwest areas. We think those areas have tremendous energy resources and tremendous inference potential over the next couple of years and is going to be likely the areas where we see the greatest opportunities for HPC and AI infrastructure build-out. But it's early days. There can always be amazing opportunities outside of those areas, and we're certainly not going to be closed off to those amazing opportunities. But I think, generally speaking, that's going to be where we focus. Brian Dobson: Great. And then I guess in recent weeks, you've seen governors from New York and Texas, I guess, draw -- put an increased level of scrutiny on data centers. Do you think that this is something that we might start to see in other important energy regions? And ultimately, do you think it favors established players like yourselves? Benjamin Gagnon: Thanks, Brian. The trend right now or the winds right now indicate we probably are going to see a few more headlines like this in the coming months. I think Pennsylvania represents a really, really unique centrist state in our view. This is a state that is very, very focused on energy and heavy industry. It's very, very blue in the major cities, and it's very red everywhere else. And so when you look at Governor Shapiro and kind of the politics of Pennsylvania, they do represent a very unique kind of centrist position for the United States these days. It is one of the least polarizing states in my view in terms of the politics because they do know that they need to balance out the trades, the industry, the energy, all of those sort of employment opportunities, which is what drives Pennsylvania with the other concerns on the other side of the hall. So we think that this is a great place to be is in Pennsylvania. We think that if states want to block themselves off from the best economic opportunity for development in decades and could be for the next couple of decades than we think that's pretty shortsighted because when you look at what one of these data center investments does for communities, for revenues, for employment opportunities, for tax budgets, for the schools and for the roads and what have you, these are transformative for the communities that we're investing in. And we think that they're very, very excited about the projects because of those investments because somebody is actually looking to do that. So we think it's pretty shortsighted, but we'll probably continue to see a few more. And generally speaking, we think Pennsylvania is in a sweet spot. Operator: I am showing no further questions at this time. I will now turn the call back over to Ben for closing remarks. Benjamin Gagnon: Thank you all for joining us today, and thank you to the entire Keel team whose work this quarter speaks louder than anything I've said on the call. We'll see you all in November with more to show you. Thank you. Before you buy stock in Keel Infrastructure, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Keel Infrastructure wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!* Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 10, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Keel (KEEL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Keel Infrastructure (Nasdaq: KEEL), formerly known as Bitcoin miner Bitfarms, reported another loss-making quarter as it completes its exit from Bitcoin mining and redirects its infrastructure toward AI and high-performance computing (HPC). The company reported a $64 million loss from continuing operations in Q2 2026, reversing a $13 million profit a year earlier, according to its Aug. 10 earnings report. Revenue fell 50% year over year to $30 million, while adjusted EBITDA swung to negative $24 million. Related: New York State Police warn of investment scam draining Americans' savings The results followed an equally difficult first quarter, when Keel recorded a $145.4 million net loss and $37 million in revenue. The company said at the time that its rebrand marked the completion of a nearly two-year transformation away from Bitcoin mining and toward AI infrastructure. Keel has now decommissioned all of its U.S. Bitcoin mining operations “in preparation for HPC site construction.” It also sold 1,085 Bitcoin (BTC) for $75 million between April 1 and Aug. 7 as part of the wind-down, leaving it with 1,861 BTC. Public Bitcoin miners have increasingly turned their power and data center infrastructure toward AI and HPC as mining profitability has come under pressure. The weighted average cash cost for publicly traded miners to produce one Bitcoin reached about $79,995 in Q4 2025, according to a CoinShares report. Bitcoin service shuts down after wave of AI attacks U.S. senators seek ban on wildfire betting Nvidia-backed company nearly doubles valuation in new funding round More than $70 billion in AI and HPC contracts had already been announced across the public mining sector. Core Scientific, TeraWulf, Hut 8 and Cipher Digital are among miners that have secured multibillion-dollar AI or HPC agreements. Bitcoin sales have also helped fund the transition. Public miners had collectively reduced their BTC reserves by more than 15,000 BTC from their peaks, with Core Scientific, Bitdeer and Riot Platforms among those selling. Keel is betting that access to power will give it an advantage in the same race. “Power is the constraint. Everything else is downstream of it,” CEO Ben Gagnon said, adding that its three priority sites were nearing full permitting. KEEL shares were trading at about $3.45 at the time of writing, down roughly 11% on the day. Related: Shark Tank's Kevin O'Leary reveals one asset that could outperform gold This story was originally published by TheStreet on Aug 10, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.

GigaCloud Technology Inc. (GCT) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $0.85 per share. This compares to earnings of $0.91 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +36.47%. A quarter ago, it was expected that this company would post earnings of $0.87 per share when it actually produced earnings of $1.04, delivering a surprise of +19.54%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. GigaCloud Technology Inc., which belongs to the Zacks Technology Services industry, posted revenues of $411.64 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.28%. This compares to year-ago revenues of $322.61 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. GigaCloud Technology Inc. shares have added about 17.7% since the beginning of the year versus the S&P 500's gain of 12.8%. While GigaCloud Technology Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for GigaCloud Technology Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.10 on $380.5 million in revenues for the coming quarter and $4.18 on $1.53 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Keel Infrastructure Corp (KEEL), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of -300%. The consensus EPS estimate for the quarter has been revised 6.3% higher over the last 30 days to the current level. Keel Infrastructure Corp's revenues are expected to be $34.95 million, down 55.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GigaCloud Technology Inc. (GCT) : Free Stock Analysis Report Keel Infrastructure Corp (KEEL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Keel Infrastructure Corp. KEEL is scheduled to report second-quarter 2026 results on Aug. 10, after market close. During the first quarter of 2026, earnings surpassed the estimate by 9.1%. Keel Infrastructure Corp price-eps-surprise | Keel Infrastructure Corp Quote The Zacks Consensus Estimate for the company’s revenues is nearly kept at $35 million, suggesting a 55.1% year-over-year plunge. Keel Infrastructure’s top line is expected to have declined due to its active pivot to High-Performance Computing (HPC) and AI data centers from its legacy Bitcoin mining. This strategy is kept in place to transition power capacity toward HPC/AI data centers, which is facilitated by decommissioning operations in Latin America and the Moses Lake site in Washington. During the first-quarter 2026 earnings call, Benjamin Gagnon, the CEO, stated that Bitcoin’s network hashrate should decline over time, affecting operational mining revenues. The consensus estimate for loss per share is pinned at 8 cents, whereas it incurred a loss of 2 cents in the year-ago quarter. The bottom line is expected to show the pressure of increasing operating expenses, driven by rising power and site infrastructure costs. It is anticipated to have moved up further on the back of rising selling, general and administrative expenses for strategic pivot. Our proven model does not conclusively predict an earnings beat for Keel Infrastructure this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter. KEEL has an Earnings ESP of -56.00% and a Zacks Rank of 3 at present. Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this time around. ESCO Technologies ESE: The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is $338.5 million, hinting at a 14.2% increase from the year-ago quarter’s actual. For earnings, the consensus estimate is pegged at $2.12 per share, suggesting a 32.5% rally from the year-ago quarter’s reported number. The company surpassed earnings in the first quarter of 2026 by 0.5%. ESE has an Earnings ESP of +1.06% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. The company is scheduled to announce second-quarter 2026 results on Aug. 6. Nayax Ltd. NYAX: The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is $120.5 million, indicating 26.1% year-over-year growth. For earnings, the consensus estimate is pinned at 9 cents per share, suggesting a 43.8% plunge from the year-ago quarter’s actual. Over the four trailing quarters, the company surpassed earnings in two quarters and missed in the remaining two, with a negative average earnings surprise of 2.4%. NYAX has an Earnings ESP of +7.14% and a Zacks Rank of 3 at present. The company is scheduled to announce second-quarter 2026 results on Aug. 10. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Keel Infrastructure Corp (KEEL) : Free Stock Analysis Report ESCO Technologies Inc. (ESE) : Free Stock Analysis Report Nayax Ltd. (NYAX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Monday, May 11, 2026 at 8 a.m. ET Chief Executive Officer — Ben Gagnon Chief Financial Officer — Jonathan Mir Need a quote from a Motley Fool analyst? Email [email protected] Ben Gagnon: Good morning, everyone, and welcome to our fiscal year 2025 earnings call. In 2025, we made a bold decision to walk away from our legacy business, Bitcoin, and build the infrastructure in North America for what comes next, HPC and AI. It was a year of deliberate and consequential transformation with a clear mandate. Secure North American pipeline, strengthen our balance sheet, accelerate site development, and position ourselves to engage customers from a place of operational momentum at the peak of the energy bottleneck constraining the growth of AI. I can say with confidence and pride that we accomplished exactly what we set out to do. The foundation you see today, the capital structure, the sites, the team, the strategy was engineered through deliberate choices, developed with discipline and built to propel us forward. We made foundational changes to reposition the business and made 100% of our focus on North American HPC infrastructure development. No half measures, no compromises and in time, no Bitcoin. We built a new company. And while we are presenting as Bitfarms today, tomorrow marks our beginning as Keel infrastructure. The name says it all. A Keel is the bottom of structural component of a vessel. It's what keeps it stable and moving forward in the right direction regardless of the condition above the water line. It is structural, it is essential, and it is exactly how we see our role in the HPC and infrastructure landscape. We are not here to compete with hyperscalers or neoclouds. We are here to enable them. Our focus is providing the critical and largely invisible foundation that will allow the world's most advanced AI platform to deploy on time and scale without interruption. We expect to close the re-domiciliation and finalize our rebranding efforts tomorrow, April 1, and we'll begin trading under the ticker KEEL, 2 business days after completion of the transaction on the Nasdaq and the TSX. We are entering this new phase from a position of strength. With over 2 gigawatts in our pipeline, Keel is a regional leader with some of the largest power land portfolios in some of the highest demand markets in North America and with robust financial strength to execute against our plan. Our current liquidity is far in excess of the CapEx budgeted to get us through permitting and ultimately to start signing leases, giving the company significant financial flexibility to execute on our strategy. And our strategy is equally as clear. We are designing all of our site and campus developments as either powered shell or co-location facilities. We believe this is where we can deliver the most value to shareholders and serve our potential customers at the speed and to the specifications they need. We were originally exploring in parallel to co-location the potential benefits of pursuing a small amount of GPU as a service at our Washington site, Moses Lake, where due to the lowest cost power for data centers in the country and a relatively smaller footprint, we believe it could be an avenue to drive additional shareholder value. Since our last quarterly call, we have spoken with an increased volume of potential customers. And it's clear from those conversations, the most accretive business model for the site is one of co-location. This is not specific to Moses Lake and applies to all of our other sites as well, where demand is even higher. So we will focus on what we do best, being an infrastructure developer and owner. This plays directly to our core competencies. We are a team of developers united by disciplined action, building cost-effective institutional-grade infrastructure at the pace our customers require. The same capabilities have built our energy platform, speed to market, capital discipline, operational rigor precisely what HPC and AI deployments demand today. This is just the natural extension of what we do best. So with all the pieces in place and with the overwhelming support of our shareholders who voted over 99% in favor of the HPC and AI pivot, the U.S. redomicile and the rebrand. Starting tomorrow, we are Keel infrastructure. Turning to Slide 4. When we sat on our pivot, we developed a 3-year transformation plan, one that as of today, we are nearly halfway through completing. In 2025, we did the intensive foundational work for our transformation, including the Stronghold acquisition, securing more power in Pennsylvania, rebalancing the portfolio to North America, a $588 million raise fully institutional and oversubscribed, our U.S. GAAP transition, New York headquarters and establishing a new executive team. This work is done. With power and land secured in some of the power markets that matter most, a team of internal experts and strategic partners that have built data centers for the largest companies in the world and a balance sheet engineered to see us through 2026, we are well positioned to continue our site development and deliver against the time lines, our prospective hyperscalers and neocloud customers need. 2026 is all about execution. Effective tomorrow, we will have completed our redomiciliation to the United States and officially rebranded as Keel infrastructure. Two major milestones that position the company for the next phase of growth. With that complete, we expect the next significant milestones to come from executing against our development at Panther Creek, Sharon and Moses Lake, where we are moving full steam ahead and working diligently across three simultaneous and active work streams. One, finalizing permits, which we expect to be done in the coming months. Two, continued work on architecture and engineering in line with ongoing customer conversations and requirements. And of course, three, our go-to-market to secure highly financeable leases with investment-grade tenants. Commercialization is well underway. The upcoming milestones investors can expect are completion of preconstruction activities like permitting, progress in customer engagement and ultimately lease execution, which we are confident we can achieve this year and will be major catalysts. 2026 is also the year where we expect to leave Bitcoin and Bitcoin mining behind. While we were probably one of the first miners to commence wind down of our Bitcoin mining exposure to reinvest that capital into infrastructure for HPC and AI, we will be accelerating those efforts in 2026 as site developments progress. 2027 is all about delivery. This is the year when we anticipate that sites would come online, we'd begin delivering megawatts to customers, HPC and AI revenue really begins and we complete our transition to a premier North American HPC and AI infrastructure company. By the end of 2027, we expect Keel will be a proven infrastructure developer and a regional leader across Pennsylvania, Washington and Quebec, and we will just continue to grow and scale from there in 2028 and beyond to over 2 gigawatts as we execute against our expansion capacity. Turning to Slide 5. In HPC infrastructure, power, location and time lines are everything. We hold something scarce and valuable secured power, land and expansion capacity in Pennsylvania, Washington State and Quebec. Some of the most in-demand markets with some of the biggest barriers to entry. We know it and so do our potential tenants. Our campuses offer solutions to hyperscalers and neocloud's greatest scaling problems, location, proximity and fiber connectivity to major metro areas and data center clusters solving for latency issues and giving our tenants proximity to their own customers and other data centers. Time lines. Our robust secured power for '26, '27 and with expansion capacity in 2028 is highly coveted in an environment where energy capacity is hard to find and multiyear waitlists are the norms. We create value for tenants by enabling them to deploy years earlier by leasing from us rather than to invest in growing organically. An energy-efficient cool climate, the lower the PUE, the more critical megawatts. Panther Creek is a great example of seeing the hyperscaler and neocloud's appetite at play. While there is a lot of interest in the site last year, inbound customer activity surged after we secured zoning in February. This is not a coincidence. It is the proof point and one that we've been making for the last year, but may still be confusing to some investors. So we'd like to be clear that investment-grade tenants value derisk sites where they can move from lease to revenue fast. The more we advance, the better our leverage. The better our leverage, the better the leases, and the more long-term value we create for shareholders. Turning to Slide 6. It is indisputable that power is the binding constraint for AI infrastructure deployment and will remain so for the coming years. Leading investment banks, Goldman Sachs, JPMorgan, Wells Fargo, Guggenheim, Moelis, they've all published extensively on this. And the consensus is clear. New power generation cannot come online fast enough to meet AI demand today, tomorrow or in the next 5 years. This bottleneck is structural, not cyclical. Hyperscalers and neoclouds that used to plan on 12-month horizons are now locking in 24- to 36-month supply chain commitments. Not tied to specific projects, but as platform level agreements and are now actively competing for the power and land to deploy it. While you are probably familiar with this information, here you can see a summary of the five development sites. The power we have secured and in some cases, the incremental power opportunities that make up our 2.2 gigawatt pipeline. Turning to Slide 7. I want to take a moment to put our current valuation context because there is a meaningful disconnect between where we trade today and the value we are positioned to capture as a company. When we analyze our current valuation against our peers, the picture becomes clear, at approximately $1.9 million per available megawatt of secure 2027 capacity, we're trading in the middle of a Bitcoin miner Group, valued at roughly $1.7 million to $2.1 million for 2027 megawatt meaning we are being valued based on having power but not what we are doing with it. For shareholders and bondholders, we see three distinct catalysts, each capable of driving meaningful reratings. The first is obviously lease execution. Across our sector, companies that have signed leases trade at $4 million to $6 million per 27 megawatts, a 2 to 3x premium to where we are today. This is the market's consistent signal driven entirely by lease execution, not facility delivery, not revenue generation, just signed leases. A signed lease secures revenue and financing derisking the developments. The market pays for that with nearly 500 megawatts actively being commercialized today and visibility on permitting across Panther Creek, Sharon and Moses lake, this catalyst is well within reach. The second catalyst and arguably the most powerful for long-term holders is securing our expansion capacity. 2/3 of our 2.2 gigawatt portfolio or approximately 1.5 gigawatts is expansion capacity, which we believe the market is assigning little to no value. While securing these megawatts is a process that will take more time, we believe additional megawatts can be secured in the second half of 2026 requiring very little CapEx while representing significant embedded value as powered land even before a lease is signed or there is a shovel in the ground. The third catalyst is delivering in 2027. Once facilities are derisked through commissioning and begin generating revenue under long-term contracts, the development risk should drop dramatically and the operator valuation numbers become transformational yet again. We are not taking a leap of faith on technology, our ability to see our power or market demand. The tech is here. The power is secured, the sites are advancing, the inbound demand is real, but the market has not yet priced in is the transformation that happens when a developer becomes a counterparty when we move from site advancing to lease executing. This is the main opportunity ahead of us to accelerate permitting, execute leases, secure our expansion capacity and ultimately deliver to our customers. This is how we will create value for our shareholders and bondholders. Turning to Slide 8. Our execution plan is defined by six areas, each supporting our ability to deliver at the pace and scale our future customers require. First, we've secured our deep bench of talent by adding over 60 years of infrastructure and development in over 50 years of data center construction experience combined in just the past few months. People have delivered at scale for the most demanding customers in the world. Jonathan Mir joined as CFO, bringing 25 years of energy infrastructure strategy and project finance expertise. We have also added an SVP of construction and of power, a VP of HPC Operations and Head of permitting to oversee the execution of these critical functions. We've assembled the right team to execute on our vision. Second, we are engaging the right industry leaders as partners, T5, Turner Construction, Corgan, [ WWT ], Vertiv. These firms have built data centers for the world's largest hyperscalers not once but hundreds of times. When customers look at our project partners, which will be available on the new website when it launches tomorrow, they will see that we have also assembled the right partners to ensure better outcomes. Third, we have the capital required to bring our sites to market. As of March 27, 2026, our liquidity stands at $520 million in cash and Bitcoin, which we expect is much more than the CapEx budgeted to get us to a lease at Panther Creek, Sharon and Washington. Jonathan will go into more detail on our capital position and financing strategy shortly, but the headline is simple. We're well funded and can move fast. Fourth, a disciplined Bitcoin exit. It is clear we are no longer a Bitcoin miner. However, with strong, robust liquidity, we can have a disciplined approach to our exit strategy. We will continue to operate up until the time sites need to be prepared for construction maximizing free cash flow before selling the miners. We will also opportunistically sell Bitcoin into strength to capture and reinvest every dollar we can into HPC and AI infrastructure. Fifth, power assets that cannot be replicated. Our megawatts sit in regions with large barriers to entry, Pennsylvania, Washington State and Quebec, all have multiple year waitlists. No one is cutting the line. Our 350 megawatts at Panther Creek, 110 megawatts at Sharon and 18 megawatts in Washington were secured before the AI demand wave made these markets highly coveted. This isn't power others can easily replicate giving us competitive edge with high-quality tenants to understand these markets and are hungry for assets like ours, which leads us to our sixth point. In this market, speed to power is what drives value. For our customers, the opportunity cost of delayed deployment is huge. So the priority is getting capacity online as quickly as possible. Every day of delay is lost revenue. As a result, power availability and certainty of delivery are the primary drivers of lease economics. This dynamic has pushed lease rates higher since our Q3 call, exactly as we said it would. The opportunity in front of Keel infrastructure is real. We now have the assets and the team is ready. I'm so proud of what we built in 2025, and I'm confident in what we'll deliver in 2026 and 2027. With that, I'll turn the call over to Jonathan. Jonathan Mir: Thanks, Ben. Turning to Slide 9. I joined the team 5 months ago. My focus has been on sharpening our approach to capital allocation, strengthening our balance sheet and capital structure and ensuring the financing actions support long-term shareholder value creation. I've had a front row of the depth of talent, the operational discipline and the strategic momentum across Bitfarms. I work closely with our operations and development teams both to understand the current trajectory of our assets and to ensure our capital plans are aligned with the opportunities ahead. What stood out to me is the extraordinary potential we have driven by the quality and potential of our sites, a strong balance sheet, the best liquidity position in the company's history and a broad team that's both deeply engaged and committed to excellence. We're moving quickly and with purpose. I'm pleased to be here with you today and discuss the progress we're making. I'll use this time to walk through our performance for fiscal year 2025 and outline our current capital strategy that we believe supports the accretive growth we're targeting for 2026 and beyond. Turning to Slide 10. Before discussing our financials for the quarter, I want to briefly frame the results are presented this quarter. As of Q3 2025, the Paso Pe facility in Paraguay has been classified as held for sale. As a result, all revenues, operating costs and asset balances associated with Paso Pe are treated as discontinued operations in our fiscal year 2025 financials. So when I refer to continuing operations, I am speaking exclusively about our North American platform, the foundation of our transition into HPC and AI infrastructure. With that, revenue for fiscal year 2025 was $229 million, up 72% year-over-year. Operating loss for fiscal year 2025 was $150 million including noncash depreciation of $98 million and $28 million of impairment charges. This compares to an operating loss of $28 million in 2024, which included $102 million of noncash depreciation and $4 million of impairment charges. Net loss for 2025 was $209 million or a $0.38 loss per basic and diluted share compared to a 2024 net loss of $7 million or $0.02 loss per basic and diluted share. The differences between 2024 and 2025 were driven by a number of factors, including change in fair market value of digital assets, primarily due to the decline of Bitcoin prices and realization of gains on disposal of Bitcoin during the year. Two additional items also impacted year-over-year comparability. First, we saw a loss of $68 million, reflecting changes in our derivative assets and liabilities. Second, 2025 impairment charges were $25 million higher than in 2024. For the year, our adjusted EBITDA was $29 million compared to $31 million in 2024. Turning to Slide 11. 2025 was a deliberate year of balance sheet optimization and improvement, providing the foundation for our next phase of growth. We successfully issued an oversubscribed $588 million convertible offering, significantly expanding our liquidity. And in February, we repaid the Macquarie debt facility eliminating legacy debt, simplifying our capital structure and freeing the company from covenants. Each of these supports the pursuit of our HPC infrastructure strategy. The Macquarie facility had been originally used to accelerate development at Panther Creek, funding critical project activities, including long lead time item procurement and substation work. Retiring the facility was a strategic decision, strengthens the balance sheet and gives us the flexibility to secure a more cost-effective financing at either the parent or project level. Our current cash position of $520 million provides the runway to advance Panther Creek, Sharon and Moses Lake through lease execution without accessing capital markets. Though we may do so if attractive opportunities arise that improve our ability to deliver the best possible long-term risk-adjusted shareholder returns. Macquarie was an excellent partner, and we appreciate their support so early in our pivot to HPC AI infrastructure. Turning to Slide 12. As we pivot to commercialization of our development sites, we have a clear financial strategy based on three principles. Capital allocation, capital formation and capital structure. Taken together, they are designed to deliver the best possible long-term risk-adjusted shareholder returns. First, capital allocation. We deploy capital into projects where the earnings potential exceeds their weighted average cost of capital. We rotate capital from businesses that are noncore or earning less than optimal returns and deploy the capital into higher return investments. Second, capital formation. Our financing strategy is designed to fund our very large growth opportunities while maintaining the liquidity needed for a stable base of operations. We will be opportunistic in our financing execution. We will fund construction of our data center projects using project or parent level bet and project or parent level equity or equity-linked offerings. We're taking a disciplined approach and at this time, are well capitalized to actively commercialize and execute leases across Panther Creek, Sharon and Washington. Third, capital structure. Our capital structure is designed to capture the best possible long-term risk-adjusted shareholder returns while also retaining overall corporate flexibility and support growth. Our objective is to operate with a deliberate liquidity strategy in order to enable clear-headed commercial decisions and capital allocation decisions rather than having liquidity drive time lines. Stepping back, our road map is clear. We are building a regionally focused high-growth HPC AI infrastructure platform, grounded in disciplined capital allocation, a strengthened balance sheet and a development cadence that maximizes returns and minimizes risk. We're funded through the key derisking stages, permitting and leasing across Moses Lake, Sharon and Panther Creek and we're entering 2026 with momentum, optionality and a balance sheet engineered for growth. We have the right people, assets, liquidity and strategy and we're well positioned to capture for our shareholders the long-term value potential we have today. With that, I'd like to return the call to Ben for closing remarks. Ben Gagnon: Thanks, Jonathan. A little over a year ago, as our team began actively integrating AI into both our business and our daily lives, we came to a realization. This isn't just another technology cycle. It's a paradigm shift. More comparable to the industrial revolution than the Internet revolution. The fundamental measure, productivity capacity is no longer calories or joules, but tokens. This became strikingly clear 2 weeks ago at NVIDIA GTC, where I witnessed hundreds of companies applying AI to everything from straightforward tasks by cleaning and image generation to extraordinary complex applications, including protein folding, cystic simulations and even brain surgery. Walking the conference floor, speaking to the attendees, one thing was unmistakable. We've only begun to scratch the surface of AI's potential. Yet even in these early days, AI is already empowering individuals, communities and companies to accomplish exponentially more. We're witnessing Jevons Paradox unfold simultaneously across every industry, thanks to AI, where improved efficiency can paradoxically drive higher, not lower demand. It is literally never cost less to transform an idea into an action, a product, an image, a refined concept, a service or countless other outlets. The possibilities are truly limitless, and while no one can predict exactly how AI will reshape our future, uncertainty remains. It will require enormous amounts of power. Our 2.2 gigawatts of capacity and strategically position land across Pennsylvania, Washington and Quebec sit directly in the path of this transformation, and we intend to capitalize on that opportunity for our shareholders. We look forward to the opportunities ahead. With that, I would like to open the call to Q&A. Operator, please go ahead. Operator: [Operator Instructions] And our first question comes from Mike Grondahl with Northland. Mike Grondahl: First question, Ben, you talked about your decision not to go the GPU rental route at Moses Creek. And just the colocation route, could you talk a little about what a couple of the major drivers were that got you to that decision? Ben Gagnon: Yes, it's a great question, Mike. When we first started talking about in Q3, we were always evaluating this alongside with the colocation. We're trying to maximize the value for shareholders. So we're always going to evaluate multiple different business models at our sites. And because they have the lowest cost energy and all these other benefits, we thought it would make a lot of sense. But as we've continued to have increasing amounts of customer conversations for Washington and other sites. It was just really clear to us that the best opportunity for us is to just remain a pure-play infrastructure developer and owner and let these customers who really want these megawatts lease these megawatts. Mike Grondahl: Got it. Got it. And then maybe secondly, you articulated, I'll say, a philosophy a quarter or 2 ago about waiting and waiting on signing a lease as terms were continuing to improve kind of implying you're going to be really patient and wait on a lease. Could you kind of update how you're thinking about that lease execution strategy and the potential timing around it? Ben Gagnon: Yes. Our strategy on lease execution has been consistent. It remains consistent today. Our view is that the best way to maximize value for shareholders is to get the best terms in a lease because that's going to be what is going to be driving our NOI and our multiple. And so when we're looking to sign 10- to 15-year agreements, it's really important for us to take the -- maybe a little bit more time than investors may want us to in order to get better terms for longer. When it looks at what is really driving the value in these lease economics, one of the biggest elements is risk, and we've spoken to this multiple times over the last couple of months. And the biggest risk for most of the people -- to go out there and have conversations and get a lot of interest. And in some cases, you could even sign a lease prior to getting permits. But all of that risk is going to be priced into the agreement, you're going to be locked into it for 10 to 15 years, and that's going to negatively impact the long-term value that we're creating for shareholders. So our strategy has been incredibly consistent. And the benefit for us is that we are operating in high demand markets with high barrier to entry. So it takes a little bit longer to get permits going in Pennsylvania or in Washington than it does in Texas, which is the easiest market in the United States for that. But we believe that drives a lot of extra value because it's way more scarce, it's way harder to acquire and there's just not as much optionality. Operator: Our next question comes from Brett Knoblauch with Cantor Fitzgerald. Brett Knoblauch: Maybe to start, could you maybe just go into detail on what permits at what sites you guys are waiting to receive? Ben Gagnon: So permits is a complicated process, and we are develop -- we're getting permits across multiple sites in multiple jurisdictions. So they all have different rules, different regulations, different time lines, different reviews, different authorities. So it's far too much detail to get into exactly what permits are remaining on all the different sites. But we are continuing to make good progress and kind of -- we're looking at the visibility over the next couple of months. And with what we've had so far with the community engagement success that we've had so far, we think that in the coming months, sometime around the mid- to late summer time. we should be achieving the full permitted status across at least one, if not all of the sites. Brett Knoblauch: And then maybe just on the leasing environment across the different sites that you guys have. I guess we were under the impression that maybe Sharon would be first to go given it's relatively further along. Is that still how you guys are thinking about it? And then in the presentation when you guys kind of list the power pipeline and road map. How much of that is from generation on site that you guys are looking into? And do you have any update on where you guys are with respect to sourcing that generation? Ben Gagnon: Yes, sure. So the -- to answer the second part of your question first, all the power that we're talking about developing for our HPC and AI data centers right now is grid connected. So the two operating power plants that we have at Scrubgrass and Panther Creek. Currently, that math is not in those charts for the secured capacity or the site development plans. But in Scrubgrass particular, we are working to expand the generation capacity there with natural gas. So we've been working to tap into the Tennessee Natural Gas Pipeline. We're achieving pretty good results there with the engineering firms. There's still probably another month or two to go before we're getting a clear path forward on the engineering plans. But Scrubgrass is our more of our pipeline site. And so those -- that power generation opportunity is more of a 2028 and 2029 time line. Everything else is grid connected, it's secure today or it's currently active. And sorry, Brett, I'm blanking on the first part of your question, would you mind repeating it? Brett Knoblauch: Yes. Just on maybe the cadence of which sites are -- quicker to go? Ben Gagnon: Yes. So really, that's going to be driven by success on permitting time lines in the customers. So all three of the sites, Moses Lake, Sharon and Panther Creek are all actively in our go-to market right now. Every single one of those has customers engaged under NDA, and they have for quite some time. And so we're continuing to push forward on those conversations and those negotiations. Really, I think what investors should think about with regards to permits, permits are more of a closing condition to a lease, right? They're really not a starting condition to a negotiation. So we have these conversations and these negotiations simultaneously while we're working towards permitting. As permitting gets closer and closer, the negotiations will also get closer and closer in tandem and the first site to get leased is likely to be the first site to be permitted. Operator: Our next question comes from Stephen Glagola with KBW. Stephen Glagola: Just on that last point, if you could clarify the sequencing here between like notice to proceed and lease execution. So in other words, like can you pre-sign leases contingent on notice to proceed? Or is like notice to proceed required before any major customer would commit to a lease? Ben Gagnon: For a customer commit to binding in our view, they're going to want NTP, and that's based on the number of conversations that we are continuing to have and there probably are some customers who would be interested to sign prior to NTP, but those aren't the investment-grade counterparties that we're really seeking to engage with. Stephen Glagola: Okay. And then just one more. How are you thinking about like Vera Rubin hardware availability in '26 and like early '27? And to what extent could that variability in supply influence the timing of lease discussions at your sites? Ben Gagnon: Yes. That's a good question, Stephen. We've been talking about Vera Rubin, I think, since Q3 call because all of our sites are basically coming online in 2027. So we're trying to make sure that they are designed for the highest level of equipment that's coming out in '27 and '28, which is the Vera Rubin. In terms of supply, we haven't seen any impact so far. I understand there's always geopolitical uncertainty in the world that may impact those supply chains. But given that energy is such a huge bottleneck, and it's always been a huge bottleneck on the growth. I don't think that there is going to be a geopolitical situation that's going to make the bottleneck change from energy over to GPUs. So we don't have any expectation right now that, that's going to have any impact on leasing or demand for sites because power is still such an extreme bottleneck. It's hard to imagine what's going to overshadow that geopolitically. Operator: Our next question comes from Michael Donovan with Compass Point. Michael Donovan: Congrats on the progress. Can you provide an update on ESA progress, specifically Panther Creek's ISA to ESA conversion? Ben Gagnon: Yes. So that's a great question, Mike. As investors probably know, we have 350 megawatts secured ESA with PPL. But in addition to that, we also have an ISA that enables us to draw down approximately 60 megawatts from the grid, and that's associated with the existing transmission line and substation for the power plant that we currently have operating. In order to get that converted over, it's really more of a regulatory matter. And so it's hard to put an exact time line as to when those stamps are going to be received, but there's no infrastructure that needs to be built. There's no CapEx that needs to be spent. Really, it's just a matter of getting the regulatory approval to convert a nonfirm service into a firm service, and that would enable us to increase our capacity beyond 350 megawatts to what we probably expect is going to be maybe 400 megawatts or possibly slightly more. We expect this is going to happen this year, but it's hard to put an exact time line on it, given it's a regulatory matter. Operator: Our next question comes from Brian Kinstlinger with AGP. Brian Kinstlinger: Last quarter, Ben, you communicated, you expected the GPU as a service and Moses Lake site would be targeted for, I believe, the first quarter for go-live. How are you shifting to co-location change the timing if at all? And my second question is, can you talk about also how the global memory shortage is impacting your site development or changing your near-term needs or planning for lead times? Ben Gagnon: Yes. So two parts to that question. In terms of switching from a GPU as a service to co-location just changing the business model doesn't really impact the development time line. So we don't really see any delay there associated with changing from GPU as a service, just to co-location. Really, it's just a matter of how we want to allocate our capital and how we want to focus the business. When it comes to the memory shortage. As a pure-play infrastructure developer and owner that really is not coming into our calculus very much, mostly that's a customer situation for them to resolve with their own supply chain because we're not the ones investing in the GPUs and the compute and the servers. Operator: Our next question comes from Martin Toner with ATB Cormark Capital Markets. Martin Toner: Good morning. Can you guys elaborate or [indiscernible] can you kind of give us some time line thoughts there? Ben Gagnon: So I'm going to repeat the question because it was a little quiet, just in case nobody else or other people had difficulty hearing. I believe the question was, can you give some time lines as to how we might be able to expand Panther Creek to 500 megawatts and beyond? So in order for us to move beyond the 350-megawatt ESA that we have secured, there's really two sources for expansion. The first is converting over that ISA from non-firm service to firm service that I just spoke to a minute ago. And that's really a regulatory matter that we expect to be resolved sometime this year. It could be tomorrow, it could be a few months from now. And then when it comes to expanding beyond that, what we have to do with that is we have to actually have new power applications. The good thing here is that the utilities are actually looking to invest in new generation in the area. So in this particular instance, and we weren't actually applying for new power. We actually have the utility call us and ask us how much more power we could take on site. Given the bottleneck constraint on power, that was obviously a very welcome call over here at Bitfarms to receive. And it's a pretty unusual one in the industry, but they're looking to scale up generation capacity in the area, specifically to service our site at greater capacity. So this is probably going to be 2 to 3 years time line because there's a lot of process involved with spinning up new generation and building those new transmission lines. But for a lot of our customers, what they really want is the fastest pathway to energization and a clear path to scale over multiple years. And so this really lines up with what the hyperscalers and what the neoclouds are searching for. Martin Toner: That's great. Hopefully, you can hear me better. Can you clarify when you expect to sign your first lease? Ben Gagnon: So I can't get into a specific time line. But in terms of milestones, as I spoke to earlier, it's really about clearing NTP as kind of the last closing condition or last milestone for us to sign a lease. So I think for the investors and the analysts on the call, the important thing to keep track of, especially over the next coming months is the continued progress that we have towards NTP because once NTP is clear, that's basically the last thing standing between us and a signed agreement. Martin Toner: Got it. Great. And last one from me. Can you talk a little bit about why mining exahash in Q4 was at the level that it was at? Ben Gagnon: So we continue to scale back our mining exposure as we continue to focus on our U.S. HPC infrastructure investments. So we haven't made any investments into Bitcoin mining. We're not spending any money on upgrades or new miners, and we're actively working to scale down the fleet and actively working to spin off assets like we have in Paraguay that are not suitable for conversion. So investors should continue to expect our hash rate to continue to trickle down over 2026 as we continue to execute on this transition to HPC and AI. Operator: Our next question comes from Mike Colonnese with H.C. Wainwright & Company. Michael Colonnese: So, Ben, I'm just curious, after securing the remaining permits across the three sites, which sounds like likely to take place in the coming months here, what does the time line look like from a data center construction and delivery standpoint? It sounds like you're pretty optimistic that revenue generation could commence as soon as next year, but any additional color there would be helpful. Ben Gagnon: Yes. I mean, really, this is the year of execution in 2027 is the year of delivery. And so at all three of our projects that we talked about today, Panther Creek, Sharon and Washington, we all expect them to come online and start delivering megawatts and start generating revenue to customers in 2027. We'll continue to provide updates as we go along. And I think once we have cleared NTP and we have signed leases, there's going to be a lot clear visibility that we can provide to investors for each specific project and their specific time lines. Michael Colonnese: Got it. And then back to Bitcoin mining operations, it sounds like you're progressively going to be scaling back hash rate as you bring some of the HPC AI data centers online. I guess what's the best way to think about hash coming offline and kind of flowing through your operating results over the near term here? Ben Gagnon: I'll speak to it at a high level and then maybe I'll pass it off to Jonathan for some further clarity. But right now, the Bitcoin mining remains profitable, but it's not it's not very -- it's marginal. So it's still contributing to the business. But really, it's not the focus of the business. It's not where we're investing our time, it's not where we're investing our efforts. And given that we have been so successful last year in raising capital and strengthening our balance sheet. It's really not super impactful for the developments that we have this year, the operations or the CapEx. So we'll just continue to scale that down, trying to maximize value in the disciplined exit. If it makes more sense to maybe sell some miners a little bit earlier then we might need to in order to begin instruction, we'll evaluate that as we will always do to maximize value for our shareholders. But really, we kind of see this as a pretty minor element of our balance sheet and a minor element of the financial plan for this year. Jonathan, do you want to add anything further? Jonathan Mir: Only that when we think about our liquidity going forward, the strategic objective is to ensure we are well capitalized through the lease process and beyond without the need to raise any new capital in the markets and that takes into account the current state of Bitcoin mining operations. It's not assuming any improvement in the economics there. So our plan is built on conservative assumptions around the status of the Bitcoin market. Operator: Our next question comes from Nick Giles with B. Riley Securities. Nick Giles: Good morning, Keel team. In the interim period where Bitcoin mining operations are wound down, but kind of pre-revenue generation on the HPC side, could the generating assets at Panther Creek and Scrubgrass be utilized in any way such as the PJM capacity auction? Ben Gagnon: So those power plants do actually participate in PJM capacity auctions. We've done that for quite some time. And so we do benefit from the capacity payments that we received there. Nick Giles: Got it. Okay. And any order of magnitude of what those could be kind of in the 2026 planning year? Ben Gagnon: So I mean, really, it's -- we've kind of maxed out on the capacity auction payments. They set a ceiling, and that's where the capacity auction payments closed. Nick Giles: Got it. Understood. Maybe one for Jonathan. You've made some progress on the capital structure, but just was hoping for any additional comments you might have on what you're looking for in an initial debt package, how you're seeing term shift and kind of what tools you have at your disposal during construction and kind of post energization. Jonathan Mir: Good question. Thanks, Nick. So our basic approach is to compare and contrast our financing options down at the asset level and upstairs at the parent level. And certainly, one of the things that we've seen in the market that has caught our attention like everyone else, is the tightening of spreads between folks issuing high-yield debt in the market that would seem like quite attractive levels for strong investment-grade counterparties or credit wraps. And those converging towards the levels seen in bank-originated classic construction of project financing. So we'll be -- each of those has its own advantages in terms of simplicity of managing the actual capital once it's raised versus negative carry costs. And as we get closer to a funding point, we'll make the decision as to what seems best for our shareholders in terms of how we decide to finance. I'm sorry, Nick, I was just going to say that the markets for our space and for infrastructure generally seem calm right now. Operator: Our next question comes from Brian Dobson with Clear Street. Gregory Pendy: It's Greg Pendy in for Brian Dobson. Just I guess one final one. Just I guess, one final one. Just on the redomiciling to the U.S., are there any implications to costs or structural implications in terms of ownership that we should be aware of as you enter this over the next couple of days? Ben Gagnon: One of the benefits and reasons for the redom is that we will now be eligible for inclusion in indices that require -- want to be a U.S. domiciled company. So for example, we'll be eligible for inclusion in the Russell 1000 and the Russell 3000 as well as for ownership in any other fund who was otherwise limited to the purchase of U.S. securities. We view that as being quite helpful in terms of moving our shareholder base to one that is institutional and long term. There are no other -- there are no cost or flexibility implications in our end. We simply see this as a nice path forward with a lot of benefits for our shareholders. Operator: Our next question comes from Bill Papanastasiou with Chardan Capital Markets. Bill Papanastasiou: Just wanted to touch on the Washington side and decision to shift towards colo. Can you confirm that this won't have any material impact on the purchase commitment that was entered into November? Or is the team considering the shift in development allocation to other sites? Ben Gagnon: Thanks, Bill. No impact on the capital commitments and the equipment we've already purchased for the Washington site by changing business models. In fact, actually, it just helps to reduce the CapEx because we're no longer paying for the compute. Bill Papanastasiou: Understood. And then how should we generally be thinking about maintenance CapEx on existing Bitcoin mining sites as you gradually shift over to AI HPC here? Ben Gagnon: We're not making any investments into the Bitcoin mining sites. Basically, we're just continuing to keep them up and running. And so no further investments are being made in the sites into new sites or into new miners. Operator: Thank you. This concludes the question-and-answer session. I'd like to turn the call back over to Ben Gagnon for closing remarks. Ben Gagnon: Thank you very much, everyone, for joining our call today and really look forward to speaking to you next time as Keel Infrastructure. Have a great day. Operator: Thank you for your participation. This does conclude the program. You may now disconnect. Before you buy stock in Keel Infrastructure, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Keel Infrastructure wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $463,900!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,401!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Keel (KEEL) Q4 2025 Earnings Call Transcript was originally published by The Motley Fool

Market forces rained on the parade of Keel Infrastructure Corp. (NASDAQ:KEEL) shareholders today, when the analysts downgraded their forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon. Surprisingly the share price has been buoyant, rising 15% to US$4.07 in the past 7 days. With such a sharp increase, it seems brokers may have seen something that is not yet being priced in by the wider market. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Following the latest downgrade, the six analysts covering Keel Infrastructure provided consensus estimates of US$124m revenue in 2026, which would reflect a substantial 43% decline on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 49% to US$0.25. However, before this estimates update, the consensus had been expecting revenues of US$146m and US$0.22 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase. Check out our latest analysis for Keel Infrastructure The consensus price target lifted 5.2% to US$5.03, clearly signalling that the weaker revenue and EPS outlook are not expected to weigh on the stock over the longer term. Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 53% by the end of 2026. This indicates a significant reduction from annual growth of 12% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 17% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Keel Infrastructure is expected to lag the wider industry. The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Keel Infrastructure. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Keel Infrastructure's revenues are expected to grow slower than the wider market. The rising price target is a puzzle, but still - with a serious cut to this year's outlook, we wouldn't be surprised if investors were a bit wary of Keel Infrastructure. So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Keel Infrastructure, including a short cash runway. Learn more, and discover the 2 other warning signs we've identified, for free on our platform here. Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Image source: The Motley Fool. May 11, 2026, at 8 a.m. ET Chief Executive Officer — Benjamin Gagnon President — Jonathan Mir Benjamin Gagnon: Good morning, everyone, and welcome to our first quarter 2026 earnings call. Today is a meaningful day for us. This is our first earnings call presenting as Keel Infrastructure. And for those tracking the story closely, I want to take a moment to acknowledge what that represents. Two years ago, we outlined a deliberate multiyear plan to transform this company, wind down Bitcoin, build out our team and repositioned every megawatt we control towards the most significant infrastructure opportunity of our generation. That plan is now fully in motion. And since our last call just over a month ago, we have also completed our redomiciliation to the United States, officially rebranded as Keel Infrastructure and closed the sale of our Paso Pe site. For those of you joining us for the first time, let me give you a clear picture of who Keel Infrastructure is and what we are building. Keel Infrastructure is a North American digital infrastructure company. We own large-scale powered land sites across Pennsylvania, Quebec and Washington that we are actively developing into over 2 gigawatts of high-performance computing campuses for leased to investment-grade hyperscalers, neocloud, enterprise and government clients. The Keel name captures who and what we are. The Keel is the structural backbone of a ship, unseen but essential converting energy into forward motion. That is exactly what we do for our tenants. We enable and accelerate the data center growth that makes tomorrow's economy possible. Turning to Slide 4. Let me take a step back now and talk about why we are attracting so much attention from potential tenants and why we're set up to create tremendous value for customers. The conversation in HPC and AI infrastructure has shifted fundamentally over the past 12 months. Customers are not asking, can you build data centers? They are asking when can you deliver power in the right location on a time line that actually matters to my deployment schedule? And how are you ensuring you can deliver? The answer to those questions is what separates sites that get leased from sites that sit empty. Our strategy is customer-centric and is structured around solving their highest value constraints. One, short time lines to power. Our sites have secured power available starting in 2027, enabling customers to accelerate deployment relative to building out interconnections organically. In PJM, Quebec and Washington, a new large load interconnection can take between 4 to 10 years. We have already done that work. That time line advantage is not incremental. It is transformational for customers trying to deploy compute at scale. Two, prime locations. Panther Creek, our flagship campus is a great example of the value our locations bring. The site sits 2 hours away from Philadelphia and New York in the PJM energy market, surrounded by established hyperscaler and neocloud data center infrastructure. Our other campuses follow the same principle, proximity to metro areas and surrounded by our customers' established infrastructure. These are not secondary energy markets. These are primary markets where our customers are actively trying to expand and finding that supply at this time does not exist. Three, a proven permitting strategy built on transparent stakeholder relations. While strong community engagement and support has always been a pillar of our culture at Keel, recent headlines are reinforcing just how critical this is. Our permitting team has decades of regional experience, and we proactively build genuine relationships with the communities around our sites. That approach produces results. Zoning is now complete at all 3 near-term sites. Land development and environmental permits are on track, including our preliminary land development approval at Sharon. Customers who have watched other developers miss permit milestones appreciate what this means for Keel's execution certainty. Four, proven delivery partners with hyperscaler grade track records. With power, land and community support, we have the foundation in place for success. However, customer confidence ultimately comes from execution, which is why we've built a partner ecosystem designed to deliver that certainty. Working with Turner Construction, Corgan, Vertiv and T5, our customers do not need to take development execution risk on an untested team. Potential customers are looking at our construction and engineering partner roster and seeing our collaboration with best-in-class infrastructure and construction partners that have demonstrated experience delivering for hyperscalers. And five, future-proof designs. We are advancing architecture and engineering in parallel with customer conversations, which means that when a customer is ready to commit, we will be ready to easily adapt to their final specifications. We are also thinking ahead with rapidly evolving technology, it has never been more critical to future-proof our data center development. We are thinking about our customer needs in 2027 and beyond, not just what they need now. Customers value that. Turning to Slide 5. Our portfolio is focused on high barrier to entry markets in Pennsylvania, Washington and Quebec. In these markets, our ability to accelerate time lines and enable regional growth creates real value for customers. Our 2026 priority is clear: sign 3 leases by year-end, one at Panther Creek, one at Sharon and one at Moses Lake. We have the right power in the right places with the right time lines. And as Jonathan will walk through, we are better capitalized than at any point in this company's history with more than enough liquidity to advance all 3 sites through permitting and lease execution. Across all 3 of our near-term development sites, we are running 3 work streams simultaneously, finalizing permits, advancing architecture and engineering aligned with customer specifications and actively commercializing to secure highly financeable leases with investment-grade tenants. That parallel execution model is intentional. In this market, customers are making site decisions now. They are looking for partners who can show them a clear credible path to power, and we create that visibility by working with great partners and advancing all 3 work streams together. So when customer is ready to commit, we are ready to build. Now let me take you through each of our 3 near-term sites. Turning to Slide 6. Starting with Panther Creek, our flagship campus in Eastern Pennsylvania and the centerpiece of our near-term development plan. We have 350 megawatts of secured gross capacity with PPL under an ESA. Development is structured in phases with an expected ready-for-service date in 2027 and additional expansion capacity beyond that. Permitting is a subject I know investors track closely. So let me walk through our approach with precision. Permits fall into 3 broad categories: zoning, development and environmental. Full permitting requires completion across all 3. Our execution strategy is built around local expertise and proactive engagement, planning and transparency. We have assembled a team with deep regional knowledge anchored by a head of permitting with decades of Pennsylvania experience, and that local presence allows us to move efficiently through jurisdictional requirements and just as importantly, to engage productively with the communities around these sites who are always key partners in Keel developments. On the permitting progress, zoning approvals were completed in February, including the data center ordinance approval by the Nesquehoning Borough, a meaningful community milestone. Land development and environmental permits remain in process and are on track. With zoning secured and a clear line of sight on development time lines, we are active in commercialization. To be clear, we do not need to wait nor are we waiting for every permit to negotiate leases. We give customers the visibility they need to make decisions and the certainty that they need to commit. In terms of the customer profile for the site, the scale and location of Panther Creek positions its squarely for hyperscalers and the largest neocloud operators. 2 hours from New York City with 8 fiber metro networks within 10 miles and direct proximity to established data center clusters, this is the kind of site that gets on a short list quickly. We are in active conversations with multiple potential customers and the engagement quality has been strong. Finally, beyond the 350 megawatts of secured power at this campus, we are currently evaluating the conversion of our existing 60-megawatt ISA to firm service, which could bring total gross capacity upwards of 400 or 430 megawatts. In addition, a new load study conducted in 2025 supports potential expansion beyond 500 megawatts for the overall campus over the longer term. We will provide updates as that conversion evaluation progresses. The point is Panther Creek is a unique asset. It has the proximity and scale to service East Coast inference and training markets for years to come. Turning to Slide 7. Moving to Sharon and Western PA. We have 110 megawatts secured by an ESA with First Energy. A 30-megawatt substation is operational today with an additional 80-megawatt substation under development. Sharon received full zoning permits last month. That is a significant milestone, and it gives customers increasing confidence in our delivery time line. Land development has been preliminarily approved and environmental permits are in progress and on track. This site is actively being commercialized with an expected ready for service date as early as 2027. Sharon sits within the PJM market with strong fiber infrastructure across 9 metro networks within 10 miles in proximity to Pittsburgh and Cleveland, 2 markets that are underserved relative to the East Coast. In terms of customer profile, the capacity and location makes Sharon a strong fit for a hyperscaler, neocloud operator or large enterprise customers looking to establish a position in Western PJM. We are in active conversations with multiple potential customers and the response to our permitting progress has been positive. Turning to Slide 8. Finally, Moses Lake, our 18-megawatt site in Washington State. Small but mighty, Moses Lake is located adjacent to one of the most proven data center markets in the United States, the Quincy, Washington corridor, which has been home to hyperscaler infrastructure for nearly 2 decades. Power availability in this region has become one of the most constrained in the country. The combination of existing cluster density and tightening power supply means that operators who need megawatts here have very limited options to grow organically. We are one of those options to establish a footprint or expand an already established operation. Moses is the only site where we made a deliberate capital decision ahead of commercialization. We purchased critical modular data center equipment in advance. That decision enables us to offer customers an accelerated deployment time line that is not available through a traditional stick build approach. Speed matters to our customers, and we engineered our deployment model to deliver it. Zoning in Moses is complete. Land development and environmental permits are in progress and on track, and the Bitcoin mining operations are actively being decommissioned. Like our Pennsylvania sites, Moses Lake is actively being commercialized with strong inbound interest and ongoing engagement with multiple counterparties. In terms of customer profile, the scale of the site positions it as an ideal fit for emerging neoclouds, enterprise and government customers who need fast, reliable access to the Pacific Northwest market and do not require a campus scale commitment to do so. Faster time line, smaller megawatt commitment, right market, that is a compelling combination. Across all 3 sites, we have clear line of sight to full permitting, active commercialization and tangible momentum towards signed leases in 2026. We look forward to keeping everyone updated on our progress. Turning to Slide 9. From a value creation standpoint, a signed lease is the single most important inflection point for our business. As signed lease does 3 things: it converts our development assets into long-term contracted cash flows. It unlocks access to low-cost nondilutive project financing, and it significantly reduces execution risk for every stakeholder in our capital structure. There is a reason we are intensely focused on getting 3 leases signed this year, where we expect each lease to be an event that reshapes how this company is valued. We are executing against all 3 simultaneously right now. The second value driver we are executing this year is to increase our secured capacity from both expansion capacity and new organic growth opportunities. The third value driver will be delivering on megawatts in 2027. We believe that these 3 inflection points are key drivers of value creation for our shareholders in the near term and long term. And with that, I'll turn it over to Jonathan to walk through our financial position and strategy. Jonathan Mir: Thanks, Ben. Turning to Slide 10. I want to open with a simple message. We are better capitalized today than at any point in this company's history, and our liquidity position gives us something invaluable in this market, the ability to both advance and derisk our sites at the pace our customers require and to make commercial decisions from a position of strength, not necessity. As discussed during our last call, our financial strategy rests on 3 principles: capital allocation, capital formation and capital structure, each directly supports our ability to execute our goal of signing 3 leases this year. Before I walk you through our strategy in more detail, I'll briefly go over our results for the quarter. Turning to Slide 11. As a reminder, as of Q3 2025, the Paso Pe facility in Paraguay has been classified as held for sale. As a result, all revenues, operating costs and asset balances associated with Paso Pe are treated as discontinued operations in our Q1 2026 financials. So when I refer to continuing operations, I'm speaking exclusively about our North American platform, which is the foundation of all our transition into HPC and AI infrastructure. With that, revenue for first quarter 2026 was $37 million, down 23% year-over-year. Operating loss for the quarter was $98 million, including noncash depreciation of $28 million compared to an operating loss of $35 million in Q1 2025, which included $18 million of noncash depreciation. The year-over-year change primarily reflects a $41 million loss related to change in fair value of digital assets in Q1 2026 compared to a loss of $23 million in Q1 2025. Loss from continuing operations was $128 million or $0.21 loss per basic and diluted share compared to a loss of $38 million or an $0.08 loss per basic and diluted share in Q1 2025. The changes reflect the increase in operating loss and a $22 million loss from the extinguishment of the Macquarie credit facility in Q1 2026. For the first quarter of 2026, our adjusted EBITDA up was negative $17 million, down from $7 million in 2025. The difference was largely due to an increase in energy and infrastructure expenses of $15 million and an unfavorable change of $7 million in the gain or loss from the sale of digital assets. Turning to Slide 12. Now let me turn to our capital position. Since our last call, we have taken 2 actions that further strengthened our balance sheet. First, we closed the sale of our Paso Pe site, which brought forward roughly 2 to 3 years of estimated cash flow under current market conditions in cash and upfront. Second, we have continued to actively manage our Bitcoin holdings, selling into strength and methodically converting a volatile asset into the stable capital our development business requires. During the period beginning January 1, 2026, and ending May 8, 2026, we sold 269 Bitcoin for $20 million in proceeds as part of our previously communicated plans to sell our Bitcoin holdings in 2026. Current liquidity as of May 8, 2026, stood at approximately $533 million in cash and Bitcoin. Let me put that number into context. This fully funds the capital required to advance Panther Creek, Sharon and Moses Lake through lease execution as well as the start of construction at Moses Lake and covers our G&A through 2028. We believe this liquidity is a strategic advantage. We can continue developing at the speed our customers require while maintaining discipline and deploying capital where the returns are most compelling. Let me now walk through the 3 principles that guide our financial strategy. First, capital allocation. Every dollar we are deploying today is advancing our 3 priority sites toward lease execution. We believe it is the highest return use of capital available to us at this stage of the company's development. Second, capital formation. As I noted, we have the liquidity to reach lease execution across all 3 sites without the need to tap into debt or equity capital markets. That said, we will remain opportunistic if attractive opportunities arise. Once we execute leases, we would expect to transition to project level financing model supported by long-term contracted cash flows, enabling us to fund construction with a high proportion of nonrecourse capital while preserving flexibility at the corporate level. The institutional financing market for HPC/AI infrastructure continues to strengthen, and we believe we're well positioned to access it on favorable terms at the appropriate time. And third, capital structure. we operate with a disciplined liquidity strategy so that we can remain flexible when making commercial decisions. As I mentioned a few moments ago, we have more than adequate liquidity today to execute against our strategy without the need to tap into capital markets. That said, we'll always take the necessary steps to ensure a strong balance sheet, and we would envision having a credit line and/or an ATM in place at some point this year as we believe these are prudent tools for any public company to have available. Again, liquidity and capital strength are directly supportive of our commercial strategy. Benjamin Gagnon: Thanks, Jonathan. Before we open for questions, I want to drive home a few things. This company has done what it said it would do. We said we would build a North American infrastructure platform. We built it. We said we would exit Latin American megawatts, done. We said we would redomicile to the United States and rebrand, complete. We said we would position our megawatts in the most capacity-constrained high-demand markets in North America, and this is exactly where 100% of our portfolio sits today. The case for Keel Infrastructure is direct. Power availability is the single biggest bottleneck constraining the growth of the AI economy. We control scarce deliverable power in 3 of the most supply-constrained markets in North America, allowing us to work alongside our customers to solve that challenge together. We have the sites, the team, the permits in progress, the partners and the balance sheet to execute, and we are executing now. 3 leases signed by year-end, revenue commencing in 2027. That is the plan, and that is what we are focused on delivering. I want to close by acknowledging our fantastic team. The pace and the precision with which we have executed this transformation, the transactions, the hires, the permitting progress, the commercialization is not the result of any one decision. It is the result of hundreds of well-made decisions by a team that is fully committed to this mission. I've never had more confidence in our team and our ability to deliver. I look forward to continuing to update you on our progress. And with that, I would like to open the call to Q&A. Operator, please go ahead. Operator: [Operator Instructions] Our first question comes from Mike Grondahl with Northland. Mike Grondahl: Ben, maybe specifically on Sharon, you had kind of talked about hyperscaler customers, neoclouds and large enterprises. Can you talk a little bit about the pros and cons or the terms from each category and kind of how -- what metrics you're going to use to decide on a lease? Benjamin Gagnon: Thanks, Mike, and it's a great question. When you're looking at all the different available potential tenants for these sites, there's obviously going to be a pros and cons across the various categories. I think broadly speaking, what you see from a hyperscaler client is probably a little bit tighter on the economics, but that's largely offset by the quality of the credit and the confidence in the long-term contract there. Neoclouds are generally paying a bit of a higher price, but they also come with a higher cost of capital. And so there's a balancing act. For us, really, it's about finding the right balancing act between the counterparty, the economics of the contract and the cost of capital, but not specifically trying to get a hyperscaler over a neocloud, but really trying to optimize across those 3 variables. Mike Grondahl: And any sense where you're leaning today? Benjamin Gagnon: I don't want to get into exactly where we're going to go. But on the slides, what we did indicate for each site was the potential kind of a tenant profiles. So that should give you an indication of kind of where we're leaning for each site because most of the sites scale is determining the kind of customer demand that we're receiving. Mike Grondahl: Got it. Then just lastly, how has demand changed over the last 90 days? Benjamin Gagnon: I don't think it has changed, Mike. It's still present. It's still incredibly strong. There is some emerging questions around kind of global investments in HPC and AI versus the U.S. given what's happened in the Middle East and given the geopolitical uncertainty of investing everywhere else. But I don't think we've seen a real change in demand. It's more or less a reinforcement of what was already there before the conflict, a preference to invest in the United States. Now we're seeing just a much stronger reinforcement of that. But I think demand is as strong as it was 90 days ago or 120 days ago. Operator: Our next question comes from Brett Knoblauch with Cantor Fitzgerald. Brett Knoblauch: On Panther Creek, which seems to kind of be like the largest initial site for you guys or the flagship site. And I know the slide deck we're kind of waiting on environmental and land. Could you maybe just help with the time line on that? Is that still a 3Q event? Could it happen sooner? And is that absolutely necessary, call it, to happen pre-lease execution? Benjamin Gagnon: So it's great question, Brett. We're still tracking on the exact same time line that we indicated on the last Q4 call a couple of weeks ago, which is kind of a mid-late summer time frame. This is what we're lining up for right now. What we want to make clear in terms of the process is lease negotiations and permitting are a parallel process. It's not as if you need those in hand to begin a successful lease negotiation, but you have to be able to show a very confident and credible pathway with a high confidence that you'll achieve it on the time lines you're going to achieve it to be successful in those lease negotiations. And we achieved that earlier this year, which is why we've been active in the commercialization strategy across all 3 of those different sites. So we shouldn't expect that the timing of the permits is going to have a slowdown in terms of the lease execution. Those are simultaneous, and we would be looking to complete the permits before executing the final lease, but the negotiation and the permit applications continue in parallel. Brett Knoblauch: Awesome. And then maybe just as a follow-up, I think what we're hearing across most of the space is that kind of capacity for 2026 is sold out. So anything with an RFS date in 2027 should be relatively attractive. And then you guys are also designing -- at least sharing for Vera Rubin. Are you seeing any change in conversation given it's a Vera Rubin kind of design relative to maybe other sites that might be maybe Blackwell? I'm just curious if you're seeing like an uptick in demand for what would be a Vera Rubin site? Benjamin Gagnon: So the Vera Rubin technology is very different than Blackwells. The engineering requirements are a magnitude of order more complex and sophisticated than the Blackwells. So the conversations are relatively different. I think the -- in terms of Blackwells, nobody has actually received their first allotment -- or sorry, in terms of Vera Rubin, nobody has actually received their first deliveries of Vera Rubin. So the conversation with Vera Rubin is much more about planning for the future and trying to accommodate for the equipment that is really just kind of coming off the first lines of the production run right now, whereas Blackwell is more of a known technology and a known engineering standpoint. I would say from a demand perspective, we see more demand for Vera Rubin with our time lines of '27. But the biggest difference in the conversation is really just the changing in real-time engineering requirements from NVIDIA for the Vera Rubin technology stack because this is just starting to emerge in the market now. Operator: Our next question comes from Bill Papanastasiou with Chardan Capital Markets. Bill Papanastasiou: Previously, I believe management mentioned that time lines for clearing permitting would be mid- to late summer. I'm not sure if this was mentioned on the call, but how is that trending? And has that time line shifted at all now that you have zoning at all 3 sites? Benjamin Gagnon: Bill, thanks for the question. Yes, we mentioned that on the Q4 call. And since we've had the Q4 call, we've cleared out on a few more permits, including zoning and preliminary land development at Sharon. So everything is tracking according to our plan. We still have high confidence on a mid- to late summer time frame across those 3 sites. It's permitting, obviously, things can go a little bit faster, a little bit slower, but we've got high confidence on those time lines. Bill Papanastasiou: And then can you just speak to your Bitcoin mining operations, where steady state today? I believe in Q4, it was around 14 exahash. How should we think about that throughout the remainder of the year? Benjamin Gagnon: Yes, it's still around 14 exahash, and it should continue to trickle downward over time. Right now, the Washington site is being decommissioned. So that's our first U.S. site where we've actively decommissioned Bitcoin mining before it was all coming out of Latin America. As we break ground and work on development across Panther Creek and Sharon, we will also be decommissioning Bitcoin mining at those sites. But we're going to try and line up the Bitcoin mining decommissioning as best as possible with the construction schedule and mining economics so that we can try and optimize and maximize the capture of the value and the cash flows there. But we'll continue to provide an update to the market as we move forward throughout the year, Bill. But you should expect it to trickle down from 14 to probably somewhere around, I think, 5 exahash around the end of the year. Operator: Our next question comes from Michael Donovan with Compass Point. Michael Donovan: On Moses Lake, the slide deck states there is a secured option to acquire neighboring property with additional capacity. Can you size the potential expansion opportunity beyond the current 18 megawatts? And what needs to happen for that option to move forward? Benjamin Gagnon: So we have a secured option for an additional 10 megawatts in the area. Nothing really needs to happen other than our desire to exercise the option. The power is there, it's secure, the land is there, the due diligence is done. Really, it's just about us wanting to exercise the option. When you go out and you do market for these sites, one of the strategic features to have in these conversations is not only to have secured power today, but to have the ability to expand that infrastructure and expand that capacity over time. And so securing the option as of right now is a great marketing benefit for us when we're going through the commercialization strategy that gives us and the customers a potential to continue to scale up in that region. Michael Donovan: Also on Washington, can you unpack the scope of the May 3 purchase commitment and clarify whether all major long lead equipment has been acquired? Benjamin Gagnon: We've secured basically everything that we need to do for the site with regards to the modular infrastructure from Vertiv, the transformers and the backup gens. Last thing that we really needed was the backup gens, which is the last thing that we had secured. So Moses Lake has got all of its equipment that it needs for its development. There's a few odds and ends, but all of the key critical pieces have been secured. Operator: Our next question comes from Martin Toner with ATB Cormark. Martin Toner: Congrats on your progress. SG&A picked up this quarter. Can you maybe talk to what we can expect for the rest of the year? And just in general, maybe... Jonathan Mir: Martin, it's Jonathan. How are you? Could you repeat the back half of your question? I did hear you ask about expectations for SG&A for the remainder of the year. I missed a bit at the end. Martin Toner: Yes. Just talk a little bit about what investment that increase in SG&A represents? Jonathan Mir: Thank you. That's very clear. So we'd expect our run rate cash SG&A to run about $25 million a quarter or $100 million a year, plus or minus. At the SG&A level, we've got a number of offsetting factors related on the one hand to the wind down of elements of the Bitcoin business and then on the other hand, adding specialized expertise in respect of the HPC/AI data center build-out. Martin Toner: Perfect. Can you talk a little bit about Quebec... Benjamin Gagnon: It was a little hard to hear that, Martin, but I believe the question was just an update on Quebec site and Sherbrooke. Is that correct? Martin Toner: Yes, please. Benjamin Gagnon: So we continue to make good progress with our 96-megawatt campus in Sherbrooke. We're hoping to have an update on today's call, but we should have an update on the Q2 call, which would include our plans for consolidating our 3 Bitcoin mining sites in Sherbrooke, our 48-megawatt bunker site as well as our 30 and our 18-megawatt sites Leisure and Garlock to a single 96-megawatt site in the same town. We're continuing to progress those conversations with the city of Sherbrooke and Hydro-Sherbrooke, have high confidence that we're going to be able to get all of those -- i's dotted and t's crossed to wrap this up and to be able to provide our plans to the public. But we're getting quite excited about our plans in Sherbrooke. We think that it represents one of the few permitted HPC/AI campuses in Quebec that will be under construction in the near term. Operator: [Operator Instructions] Our next question comes from Brian Dobson with Clear Street. Brian Dobson: So thanks for the positive commentary on the demand environment. But do you think you could maybe give us a little bit of color on what you see as the biggest gating factors for your growth over the next few years? And if there are any long lead time obstacles that you're trying to overcome? Benjamin Gagnon: So I think the biggest gating factor, Brian, is just bandwidth, to be honest with you. We've built a great team. We're continuing to build a great team, but we have 2 gigawatts worth of development pipeline to execute against. And there's a tremendous amount of technical details and complexity associated with these projects. We've done a great job in terms of increasing our bandwidth with adding more people, selling off noncore assets, completing these structural things, which really help to simplify the business and the administration of the business like redoming off to the United States and completing our pivot out of Canada and LatAm. So all of that stuff is adding into that. We've also had a lot of success with early integrations of AI into people's workflows and to people's work streams, which is helping productivity as well. But I think that's probably just the biggest constraint is bandwidth. And that's something that we're continuing to improve upon as we continue to add people to the team, continue to add great partners like Turner Construction and Corgan on A&E and all these other different areas. I think we've got a very good pathway to address those and to execute across all of our different campuses. Operator: Our next question comes from Mike Colonnese with H.C. Wainwright & Company. Michael Colonnese: Just one for me today. If you could just talk about the pricing dynamics that you're seeing for negotiations with prospective tenants here. Is it fair to assume that Keel could secure better economics on a lease than what we've seen in the marketplace recently, specifically given the location of your sites in PJM and Washington and paired with your data center design, which sounds like it's aiming to support the Vera Rubin deployments? Benjamin Gagnon: Thanks, Mike. It's one of the questions that we're paying very, very close attention to, and it's one of the things that we've been talking about for some time now that we believe that the economics are continuing to improve as the scarcity continues to get worse and demand continues to accelerate. I don't want to get locked in on any sort of fixed numbers with lease economics, but I think the broad trend is quite clear. I don't think it's changed or slowed down at all. The market demand for this growth is very, very high. We're seeing hyperscalers reconfirm their commitments, in some cases, increase their commitments, in some cases, making pretty loud statements on quarterly calls around the opportunity cost of the missed revenue for not having that compute in place. So we do think that this is probably going to be a trend that continues to play out for years to come. And we look forward to taking advantage of our energy position in an increasingly energy-constrained market. Michael Colonnese: Very helpful, Ben. If I could just squeeze one more in, actually. On the CapEx side, as you've gotten further along in your basis of design with your various campuses, has your capital requirements or CapEx deployment needs changed at all since your initial framework when it comes to deploying these data centers? Jonathan Mir: It's Jonathan, Mike. Generally speaking, no, our views on CapEx deployment have not changed since our initial framework. And so we're comfortable with our current plans and people always ask about guidance on this topic, and we'd say the figure is generally used as a rule of thumb throughout the industry. should be fine for -- as a practical matter. Operator: Our next question comes from Nick Giles with B. Riley Securities. Nick Giles: Today's discussion has centered on your first 3 sites, but I wanted to ask about Scrubgrass. Can you just give us a sense for progress there specifically? And what do you see as the key milestones for that site over the next 6 to 12 months? Benjamin Gagnon: Thanks, Nick, and I appreciate your enthusiasm for Scrubgrass, which is an enthusiasm that I share. I find Scrubgrass to be a really exciting project for us. It's likely going to be the crown jewel of the company in the coming years, but there's still a lot of work for us to execute against before it can achieve that kind of status. The reality is that this is going to be one of the largest data center campuses in Pennsylvania, but we've got to get power secured from a couple of different angles and it's just going to take some more time to do that. So on the grid connection side, the detailed load study is continuing forward. We should expect to have an indication as to what the results of that are sometime around the very end of the year in Q4. And then we're working on securing the energy pipeline lateral construction and the energy contracts as well as the agreements with either an IPP or a similar firm to come out and deploy nat gas turbines on site, even evaluating options for us to do it ourselves. So it's a little too early to really say exactly what's going to happen or when it's going to happen, but we do share your enthusiasm for that site and its potential. We do think it's going to be one of the more transformative value creation opportunities for the business and for shareholders. So it is one of our big focuses for the company and for management this year is to secure the megawatts at Scrubgrass and pull them out of that expansion bucket into the secured bucket. That would more than double our secured capacity by doing so and would give us a real, real powerful giga campus in Pennsylvania. And if I could just build on that for one brief moment, what we've seen in the market is that the giga campuses are fiercely contested, especially if you have a giga campus outside of Texas, which are increasingly rare, those sites have a more competitive tension-filled process when they're going through the commercialization stage. And we would look forward to taking full advantage of that in a capacity-constrained market. Nick Giles: That's super helpful. Just to clarify, how much power does the detailed load study cover? Benjamin Gagnon: The detailed load study is for 750 megawatts. Operator: I'm showing no further questions at this time. I'd like to turn the call over to Ben Gagnon, CEO, for closing remarks. Benjamin Gagnon: Thank you, everyone, for attending our Q1 call. At this time, we'll go ahead and end the call, but we'll continue to provide updates for you on our website and through the normal investor channels. Thank you. Operator: Thank you for your participation. You may now disconnect. Everyone, have a great day. Before you buy stock in Keel Infrastructure, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Keel Infrastructure wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Bitcoin and Nvidia. The Motley Fool has a disclosure policy. Keel Infrastructure (KEEL) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool